Fiscal Policy and Impact of Taxes on The Economy - The Case of Kosovo and The Countries of The Western Balkans

Fiscal policy as an instrument of economic policy in post-war Kosovo, built under specific conditions, includes the implementation of modern concepts of taxation, since the tax system during its gradual construction has been harmonized with the rules of the European Union. In the process of formulating fiscal policy, policy makers define the objectives they aim to achieve and the fiscal instruments by which the objectives are made feasible. Since the post-war period, during the transition period oriented towards the market economy, among other things, Kosovo has given importance to the construction of the tax system and the process of its reformation. Tax reforms aim to improve the economic environment and usually include steps that simplify the tax system. In the framework of the fiscal policy and taxes applied in Kosovo, we can say that despite the results achieved mainly of a fiscal nature, the steps taken through fiscal reforms were not sufficient in the race to create a favorable environment for business. From the economic point of view, the tax system has been mainly characterized by the fiscal character on the one hand, while on the other hand, the unfavorable structure of tax collection continues to remain. Through this study, we aim for the given conclusions and recommendations to be taken into consideration and serve actors in the field of public finance.