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In this paper we measure the influence of the instruments of Serbia’s fiscal   system - personal taxes (personal income tax and social security   contributions) and social benefits (means tested and nonmeans tested) - on   income redistribution, using the latest data from the Household Budget Survey   2012. We analyse the redistributive effects of the fiscal system for the year   2013 and of the fiscal system that has been functioning since 1st January   2014. We find that the redistributive effect reduces income inequality by   about 50% in both observed years. Social benefits create 98% of vertical   redistribution (2013), whereas personal taxes initiate 2% (2013). State   pensions, means-tested social benefits, and social security contributions are   most important in reducing inequality in Serbia (2013). The partial fiscal   reform (2014) has not changed the rank of the focused fiscal instruments

The redistributive effects of personal taxes and social benefits in the Republic of Serbia