Turnover Tax and its Role in the Economy

Abstract

This study examines the role of turnover tax in supporting small business development and ensuring fiscal stability in the economy. The research is based on empirical analysis of tax revenue structures, particularly focusing on the contribution of small business taxes to total budget revenues. The findings indicate that turnover tax plays a significant role in expanding the tax base and increasing government revenues by simplifying tax compliance for small and medium-sized enterprises. The analysis also shows that turnover tax contributes to the formalization of economic activity and improves tax administration efficiency. However, the study highlights potential limitations, including the unequal tax burden on low-profit businesses. The results suggest that turnover tax is an effective fiscal instrument when combined with digital tax administration and balanced tax policy design.