EFFICIENCY OF TAX RELIEF FOR CHARITY CONTRIBUTIONS

It is analyzed the introduction of general relief for charity contributions into Croatian income tax system from the point of view of tax justice and especially economic efficiency. In spite of various arguments in behalf of relief introduction, it is proved that it could be also efficient, because the increase of charity contributions on the whole would exceed the resulting loss of tax revenues which is estimated to about 0,68-0,88 percent of income tax revenue.