A Peer Event on Tax Policy in the Western Balkan Countries

In collaboration with the JVI, the IMF’s Fiscal Affairs Department organized a seminar (12-13 September) on the current state and future prospects of tax policy, for Western Balkan countries. High-level officials discussed, in five sessions, issues such as the implications of European accession on their tax levels and structures, how the Inclusive Framework’s global minimum tax can be implemented in the region, the impact of publishing tax expenditures reports on the tax policy dialogue and tax transparency, and how recurrent property taxes can be made more effective as funding sources for local governments. Key takeaways from the seminar included:

1. identification of gaps between countries’ institutional capacities to conduct tax policy (for example, ex-ante and ex-post assessment of tax policies) and domestic and regional pressure for taxation to respond to various objectives (for instance, revenue mobilization, climate transition, and labor markets incentives);
2. peer-learning, particularly on common issues such as labor taxation and corporate tax incentives, can be very beneficial for country officials;
3. EU accession process requires significantly resources, both strategic and technical, for countries to devise medium-term strategies and options to move their tax system toward the Acquis Communautaire.

Participants particularly appreciated the interactive nature of the seminar, which took the form of a mix of presentations and panel discussions. This seminar is part of the Southeast Europe Project funded by the European Commission and the Swiss Secretariat for Economic Affairs. 

Mario Mansour, Division Chief, IMF Fiscal Affairs Department