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Tax Authorities and Local Government Development in Poland
Corresponding Author(s) : Joanna Rogalska
Humanities & Social Sciences Reviews,
Vol. 11 No. 6 (2023): November
Abstract
Purpose of the study: The purpose of this article is to examine the influence that tax authorities have had on the growth and progress of local governments in Poland. Through an analysis of the financial autonomy, degree of decentralisation, and local tax policy of Polish municipalities, this research endeavours to illuminate the correlation between tax authorities and the growth of local governments in Poland.
Methodology: This article conducts a comprehensive literature review on the subject of local tax competition studies in Poland. In addition, empirical experiments conducted on Polish data to determine the concept's applicability throughout the region are included.
Main findings: Based on the analysis, Poland holds a considerable level of financial autonomy, which is attributed to its authority in determining local tax rates and its freedom to finance investment initiatives. Moreover, research has revealed that the fiscal policies implemented by neighboring municipalities in Poland exert a substantial influence on the choices made by local legislators. This suggests that competition and local tax policy have a significant impact on the evolution of local administrations across the nation.
Application of the study: The findings of this study have significant implications for policymakers and local authorities in Poland. Understanding the impact of tax authorities on the development of local governments can help in formulating effective fiscal policies and strategies for sustainable development. By recognising the influence of tax regulations and revenue diversification on fiscal sustainability, policymakers can make informed decisions regarding local tax policies and financial autonomy.
Originality/Novelty of the study: In the article, the author emphasised the examination of the impact of tax authorities on the development of local governments in Poland, particularly in the context of the limited tax autonomy of Polish local authorities. The study delves into the unique challenges and opportunities that arise from this restricted tax autonomy and how it influences the fiscal sustainability and development of local governments in the country. Additionally, the analysis of the effects of municipal tax policy, including the influence of neighbouring municipalities' tax rates on local politicians' decisions, provides valuable insights into the dynamics of tax competition and its implications for local governance in Poland.
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- Baun, M., & Marek, D. (2017). The limits of regionalization: The intergovernmental struggle over EU Cohesion Policy in the Czech republic. East European Politics and Societies, 31(4), 863-884. https://doi.org/10.1177/0888325417720717
- Białek‐Jaworska, A. (2022). Revenue diversification and municipally owned companies’ role in shaping the debt of municipalities. Annals of Public and Cooperative Economics, 93(4), 931-975. https://doi.org/10.1111/apce.12358
- Blokker, P. (2011). Dissidence, republicanism, and democratic change. East European Politics and Societies, 25(02), 219-243. https://doi.org/10.1177/0888325410387642
- Dubynetska, P., Sodoma, R., Kupchak, M., Podzizei, O., Lesyk, L., & Zhuk, M. (2022). Financial decentralization of territorial communities in the context of the implementation of international experience. Management Theory and Studies for Rural Business and Infrastructure Development, 45(3), 306-313.
- Felis, P., Rosłaniec, H., & Szlęzak-Matusewicz, J. (2019). Property tax policy of rural and urban-rural municipalities in Poland. Acta Scientiarum Polonorum. Oeconomia, 18(4), 31-39. https://doi.org/10.22630/ASPE.2019.18.4.42
- Furceri, D., Sacchi, A., & Salotti, S. (2016). Can fiscal decentralization alleviate government consumption volatility?. Open Economies Review, 27, 611-636. https://doi.org/10.1007/s11079-016-9392-1
- Kooij, J., & Groot, T. (2021). Towards a comprehensive assessment system of local government fiscal health. Maandblad voor Accountancy en Bedrijfseconomie, 95(7/8), 233-244. https://doi.org/10.5117/mab.95.67693
- Poland –(2023) Fiscal Powers, https://portal.cor.europa.eu/divisionpowers/Pages/Poland-Fiscal-Powers.aspx (access: 10.12.2023).
- Rodríguez‐Pose, A., & Krøijer, A. (2009). Fiscal decentralization and economic growth in Central and Eastern Europe. Growth and change, 40(3), 387-417. https://doi.org/10.1111/j.1468-2257.2009.00488.x
- Surówka, K. (2021). Role of EU Funds in Financing the Activity of a Local Government in Poland from 2011 to 2020. European Research Studies Journal, 24(1), 1096-1109. https://doi.org/10.35808/ersj/2089
- Swianiewicz, P., & Łukomska, J. (2016). Local TaxCompetition in Poland? Miscellanea Geographica. Regional Studies on Development, Sciendo, 20(3), 37-43. https://doi.org/10.1515/mgrsd-2016-0018
- Widuri, R., Devina, D., Marta, F., & Wati, Y. (2019). The influence of penalties, the trust on authorities, and the tax audit toward tax compliance. Journal of Economics and Business, 2(2), 218-229. https://doi.org/10.31014/aior.1992.02.02.81
- Wojtowicz, K., & Hodzic, S. (2021). Relationship between fiscal sustainability and efficiency: evidence from large cities in Poland. Economics & Sociology, 14(3), 163-184. https://doi.org/10.14254/2071-789X.2021/14-3/9
References
Baun, M., & Marek, D. (2017). The limits of regionalization: The intergovernmental struggle over EU Cohesion Policy in the Czech republic. East European Politics and Societies, 31(4), 863-884. https://doi.org/10.1177/0888325417720717
Białek‐Jaworska, A. (2022). Revenue diversification and municipally owned companies’ role in shaping the debt of municipalities. Annals of Public and Cooperative Economics, 93(4), 931-975. https://doi.org/10.1111/apce.12358
Blokker, P. (2011). Dissidence, republicanism, and democratic change. East European Politics and Societies, 25(02), 219-243. https://doi.org/10.1177/0888325410387642
Dubynetska, P., Sodoma, R., Kupchak, M., Podzizei, O., Lesyk, L., & Zhuk, M. (2022). Financial decentralization of territorial communities in the context of the implementation of international experience. Management Theory and Studies for Rural Business and Infrastructure Development, 45(3), 306-313.
Felis, P., Rosłaniec, H., & Szlęzak-Matusewicz, J. (2019). Property tax policy of rural and urban-rural municipalities in Poland. Acta Scientiarum Polonorum. Oeconomia, 18(4), 31-39. https://doi.org/10.22630/ASPE.2019.18.4.42
Furceri, D., Sacchi, A., & Salotti, S. (2016). Can fiscal decentralization alleviate government consumption volatility?. Open Economies Review, 27, 611-636. https://doi.org/10.1007/s11079-016-9392-1
Kooij, J., & Groot, T. (2021). Towards a comprehensive assessment system of local government fiscal health. Maandblad voor Accountancy en Bedrijfseconomie, 95(7/8), 233-244. https://doi.org/10.5117/mab.95.67693
Poland –(2023) Fiscal Powers, https://portal.cor.europa.eu/divisionpowers/Pages/Poland-Fiscal-Powers.aspx (access: 10.12.2023).
Rodríguez‐Pose, A., & Krøijer, A. (2009). Fiscal decentralization and economic growth in Central and Eastern Europe. Growth and change, 40(3), 387-417. https://doi.org/10.1111/j.1468-2257.2009.00488.x
Surówka, K. (2021). Role of EU Funds in Financing the Activity of a Local Government in Poland from 2011 to 2020. European Research Studies Journal, 24(1), 1096-1109. https://doi.org/10.35808/ersj/2089
Swianiewicz, P., & Łukomska, J. (2016). Local TaxCompetition in Poland? Miscellanea Geographica. Regional Studies on Development, Sciendo, 20(3), 37-43. https://doi.org/10.1515/mgrsd-2016-0018
Widuri, R., Devina, D., Marta, F., & Wati, Y. (2019). The influence of penalties, the trust on authorities, and the tax audit toward tax compliance. Journal of Economics and Business, 2(2), 218-229. https://doi.org/10.31014/aior.1992.02.02.81
Wojtowicz, K., & Hodzic, S. (2021). Relationship between fiscal sustainability and efficiency: evidence from large cities in Poland. Economics & Sociology, 14(3), 163-184. https://doi.org/10.14254/2071-789X.2021/14-3/9