“Economic Sciences: theory and practice” is scientific, refereed, biannual journal. The Journal of “Economic Sciences: theory and practice” has been founded by Azerbaijan State University of Economics in 1994.
The Journal has been received to registration in the centre of international ISSN (International Standard Series Number, ISSN-2220-8739). Also, it has been included by the Supreme attestation Commission under the President of Azerbaijan Republic to the list of scientific publications on economic sciences.
Tax burden, i.e. the ratio of the tax revenues and the aggregate taxable income, is an important macroeconomic variable and economic policy instrument which account for the tax burden and the revenue structure in the economy. The macroeconomic regulation function in the context of taxation comes to its own mainly over the value added tax (VAT). The effectiveness fiscal policy in general as well as tax policy in particular depends mainly on the VAT-level in the economy. In the framework of this paper we focus on the performance three post-Soviet Republics, Russian Federation, Azerbaijan and Kazakhstan in terms of the VAT-policy and its efficiency. Due to the completely new emergence of the tax system in all three mentioned states, the paper in hand is a kind of assessment of the different economic policy approaches in these three country cases. From this point of view, a comparative analysis of the present situation of the tax system of these countries is an interesting area. We estimate the optimal levels of the tax burden on VAT on the basis of econometric models and the Laffer points of the types I and II were determined for each case study. It should be noted that the Laffer point of the type I is the level of tax burden at which the volume of total output reaches its maximum, and at the Laffer point of the type II, the amount of tax revenue reaches its maximum.
Key words: taxes, tax burden, VAT, optimal tax burden, Laffer point.
JEL classification: C1, C13