The topic of dividend taxation in Republika Srpska elicits varied opinions among economists and trade unions. Economist Milenko Stanić believes Republika Srpska should align its tax rates with neighboring countries, as it currently has one of the lowest corporate tax rates and untaxed dividends, which may lead to abuses and a shadow economy. Trade union representatives, such as Goran Stanković, emphasize that the low corporate tax rate and untaxed dividends are major sources of the shadow economy and that tax policy changes are necessary to protect workers, preserve jobs, and increase budget revenues. Economics professor Mladen Ivanić points out that the problem is not only the low corporate tax but also the high payroll contributions, and a comprehensive tax reform is needed to stimulate economic development. Overall, there is consensus that the tax system should be simplified and adjusted to reduce abuses and promote sustainable economic growth.
Political Perspectives:
Left: Left-leaning perspectives emphasize the need for fair taxation to reduce inequality and combat the shadow economy. They highlight the role of low dividend taxation in enabling tax avoidance and call for stronger regulations and reforms to protect workers and ensure social justice.
Center: Center perspectives focus on balancing economic growth with fair taxation. They acknowledge the importance of competitive tax rates to attract investment but also stress the need to close loopholes and prevent abuses that harm the budget and workers. They advocate for measured reforms that support sustainable development.
Right: Right-leaning views prioritize maintaining low taxes to encourage investment and economic activity. They warn that increasing taxes on dividends or corporate profits could drive businesses away and reduce economic dynamism. They emphasize the importance of a stable and predictable tax environment to foster long-term growth.