Reformation and Decentralization of Tax System, in Function of Kosovo Municipality Competences Growth - with Particular Emphasis on the Tourism Development in the Municipalities of Dukagjini Region

After the independence the Republic of Kosovo is extremely centralized and in todays it is considered one of the most centralized countries in Europe. The high level of centralization has maximally limited the competences for which the local authorities are responsible, violating the economical, financial and fiscal independence. Reforming the tax system under the principle of fiscal decentralization is important for Kosovo, because it will guarantee to the local governments the necessary resources to meet their legal, strategic and development obligations. The progress in fiscal decentralization seeks to be built on trust, confidence and mutual respect. Kosovo not only hasn’t achieved significant progress in fiscal decentralization but surprisingly this issue do not even is debated in social and academic life. The today’s trend and current institutional interest for the accession in EU means the urgent need for measures related to the design of a program that contains calculation of expenditure with the aim to successfully implement the reforms for fiscal decentralization and strengthening of local independence in the field of revenues which are essential for normal municipal functions. Regarding the level of decentralization, based on the circumstances and economic - social development, our system should be developed making it comparable to other EU countries because this means a duty that should be manifested in achieving international standards of decentralization.