MECHANISMS FOR ENSURING THE PRINCIPLE OF EQUITY IN THE TAXATION SYSTEM
Main Article Content
Abstract
The principle of equity is one of the fundamental pillars of an effective and sustainable taxation system, as it ensures a fair distribution of the tax burden among different categories of taxpayers. This article explores the theoretical foundations of tax equity and analyzes the key mechanisms for ensuring its implementation within the taxation system. Particular attention is given to vertical and horizontal equity, progressive taxation, tax exemptions, social tax benefits, and differentiated tax rates as tools for achieving social justice. The study also examines the role of tax administration, transparency, and digitalization in strengthening fairness and reducing inequality in tax collection. Based on analytical and comparative approaches, the article identifies existing challenges in ensuring tax equity and proposes practical recommendations aimed at improving the efficiency of tax policy and enhancing public trust in the taxation system.
Downloads
Article Details
Section
This work is licensed under a Creative Commons Attribution 4.0 International License.
Authors retain the copyright of their manuscripts, and all Open Access articles are disseminated under the terms of the Creative Commons Attribution License 4.0 (CC-BY), which licenses unrestricted use, distribution, and reproduction in any medium, provided that the original work is appropriately cited. The use of general descriptive names, trade names, trademarks, and so forth in this publication, even if not specifically identified, does not imply that these names are not protected by the relevant laws and regulations.
How to Cite
References
1.Murphy, L., & Nagel, T. Traditional Criteria of Tax Equity. In The Myth of Ownership: Taxes and Justice. Oxford University Press, 2002.
2.Musgrave, R. A., & Musgrave, P. B. Public Finance in Theory and Practice. (Classical text on tax equity and public finance theory) — foundational for understanding vertical and horizontal equity principles.
3.“Vertical and horizontal equity of wealth taxes: An assessment from a joint income-wealth perspective”. Economics Letters, Volume 234, 2024.
4.Chapter 10: Taxation. In Handbook of Law and Economics, Elsevier, 2007 — overview of tax functions and equity in taxation.
5.“How to Achieve Efficiency and Equity in the Tax System?” Hrčak, 2020 — analysis of trade-offs between equity and efficiency in taxation.
6.AccountingInsights Team. Horizontal Equity in Tax Systems and Public Policy. 2024 — principles and policy implications.
7.Investopedia editorial. “Understanding Horizontal Equity in Tax Systems.” Investopedia. — definition and explanation of horizontal equity.
8.Investopedia editorial. “Vertical Equity: What It Is, How It Works, Example.” Investopedia. — explanation of vertical equity and ability-to-pay concept.
9.Schumpeter, J. The Crisis of the Tax State; and Martin, I. W., Mehrotra, A., & Prasad, M. The New Fiscal Sociology. (Important perspectives on fiscal sociology and tax equity foundations)
10.Axrorov, Z. O. “Optimal Taxation Theory” in Scientific Journal of Actuarial Finance and Accounting, 2024 — on optimal tax principles supporting equitable systems.