Efficiency of road tax in the tax system of the Czech Republic

Abstract

The paper deals with the efficiency of road tax in the tax system of the Czech Republic, focusing on the administrative costs of taxation on the timeline 2005 to 2009. It contains a theoretical definition of tax efficiency, and describes the types of costs connected with taxes. From this perspective it focuses on quantifying the direct administrative costs of road tax. Direct measurement of administrative costs is done by using the method called the method of recounted worker which classifies employees of local tax authorities in separate groups and assigns each group a specific number of employees for each reference road tax using the conversion factors. Then it defines the total expenditure of local tax authorities using the coefficients for a particular monitored tax and it provides administrative costs as a percentage of road tax receipts. It can be said from obtained results that direct administrative costs of road taxes are higher, especially if the Ministry of Finance (2004) states that the average direct administrative costs of the tax system in the Czech Republic reach about 2 %. The results achieved in individual surveyed years are for road tax in relation to the reported average value of direct administrative costs of the tax system in the Czech Republic, increased on average by about 1.96 percentage point. Finally, the results of measurements indicating the proposed amendment are discussed.

Corporation Income Tax and Administrative Costs of the Public Sector

“…On the basis of results of measurements concerning property taxes (real estate tax, gi tax, estate tax and tax on real estate transfer) performed earlier we establish that the income tax on legal persons is an absolute "good result", as the administrative costs necessary for its collection are negligible if compared with the amount of collected tax. This statement is based on conclusions of a separate measurement whose results are contained in articles Andrlík (2010aAndrlík ( , 2012Andrlík ( , 2014, where the values of direct administrative costs related in particular to estate tax and gi tax exceed 100%, and local revenue authorities sustain losses from their collection. The future and further development of direct administrative costs related to tax on income of legal persons is diffi cult to predict as it depends on a number of factors.…”

Taxation of passenger motor vehicles with environmental aspect

“…However, their meanings stay the same, according to Musgrave and Musgrave (1994). Contribution by Andrlík (2012a) pays attention to these theoretically defi ned requirements for road tax, especially to eff ectiveness of the choise of road tax in the Czech Republic.…”

Collection of road tax in the years from 1993-2011 in the Czech Republic

“…If not the case, the tax collection loses a sense and becomes an ineff ective and useless burden for both the tax payers and the tax administrators. The particular results of eff ectiveness measurement, as mentioned above, are stated by Andrlík (2012). As for the results, of these analyzes for property taxes are published in the article Andrlík (2010b).…”

“…Low yields combined with high direct administration costs are becoming the strongest arguments in favour of amendment or abolition of specifi c components of property taxes. The issues of road tax eff ectiveness measurement and quantifi cation of specifi c results is dealt with in detail by Andrlík (2012).…”