{
  "title": "Tax Potential in North Macedonia",
  "publication": "Selected Issues Papers, June 22, 2026",
  "sourceUrl": "https://www.imf.org/en/publications/selected-issues-papers/issues/2026/06/22/tax-potential-in-north-macedonia-577143",
  "canonical": "https://www.imf.org/en/publications/selected-issues-papers/issues/2026/06/22/tax-potential-in-north-macedonia-577143",
  "overlayPath": "/en/publications/selected-issues-papers/issues/2026/06/22/tax-potential-in-north-macedonia-577143/index.md",
  "summary": "This paper assesses North Macedonia’s tax potential and reform options to support fiscal consolidation and create space for rising long-term spending pressures.",
  "sections": [
    {
      "heading": "Overview and main finding",
      "content": "- The paper assesses North Macedonia’s tax potential and reform options to support fiscal consolidation and create space for rising long-term spending pressures.\n- Tax revenue remains the lowest in the region, reflecting low statutory rates, extensive tax expenditures, weak tax efficiency, and a sizable informal economy.\n- Using a stochastic frontier model for 154 countries, the paper estimates tax potential at about 21 percent of GDP, implying a tax gap of around 3½ percent of GDP."
    },
    {
      "heading": "Methodology and scope",
      "content": "- Empirical approach: stochastic frontier model applied to 154 countries.\n- Coverage: analysis focused on tax potential and reform options for North Macedonia.\n- Publication specifics:\n  - Pages: 14\n  - Volume: 2026\n  - Issue: 049\n  - Series: Selected Issues Paper No. 2026/049\n  - DOI: https://doi.org/10.5089/9798229050135.018\n  - Stock No: SIPEA2026049\n  - ISBN: 9798229050135\n  - ISSN: 2958-7875\n- Authorship and date:\n  - By Yuan Xiao, Faton Sulejmani, Anamaria Maftei\n  - June 22, 2026"
    },
    {
      "heading": "Key policy recommendations",
      "content": "- VAT base broadening.\n- Rationalized CIT incentives.\n- More progressive PIT.\n- Higher environmental and health excises.\n- Stronger property taxation.\n- Improved tax administration."
    },
    {
      "heading": "Subject classifications and keywords",
      "content": "- Subject: Expenditure, Fiscal policy, Revenue administration, Revenue mobilization, Revenue performance assessment, Tax gap, Taxes, Value-added tax\n- Keywords: Domestic Revenue Mobilization, Global, IMF country, IMF staff, issues paper, Middle East, North Macedonia, paper estimate, Revenue mobilization, tax expenditure, Tax Gap, Tax Potential, Value-added tax\n\nSource: IMF Selected Issues Papers — \"Tax Potential in North Macedonia\" by Yuan Xiao, Faton Sulejmani, and Anamaria Maftei (June 22, 2026).\n\n---\n\n Content in this bundle\n\n- Tax Potential in North Macedonia; IMF Selected Issues Paper No. 2026/049; May 12, 2026\n  - Tax Potential in North Macedonia; IMF Selected Issues Paper No. 2026/049; May 12, 2026 (Markdown version){rel=\"alternate\" type=\"text/markdown\"}\n  - Tax Potential in North Macedonia; IMF Selected Issues Paper No. 2026/049; May 12, 2026 (PDF){rel=\"external\" type=\"application/pdf\"}\n\n---\n\nSource: https://www.imf.org/en/publications/selected-issues-papers/issues/2026/06/22/tax-potential-in-north-macedonia-577143"
    }
  ],
  "bullets": [
    "[Markdown version](/en/publications/selected-issues-papers/issues/2026/06/22/tax-potential-in-north-macedonia-577143/index.md)",
    "[Structured JSON version](/en/publications/selected-issues-papers/issues/2026/06/22/tax-potential-in-north-macedonia-577143/index.json)",
    "[Bundle manifest](/en/publications/selected-issues-papers/issues/2026/06/22/tax-potential-in-north-macedonia-577143/bundle-manifest.json)",
    "Authors: Yuan Xiao, Faton Sulejmani, Anamaria Maftei",
    "Published: June 22, 2026",
    "Series: Selected Issues Papers",
    "DOI: https://doi.org/10.5089/9798229050135.018",
    "The paper assesses North Macedonia’s tax potential and reform options to support fiscal consolidation and create space for rising long-term spending pressures.",
    "Tax revenue remains the lowest in the region, reflecting low statutory rates, extensive tax expenditures, weak tax efficiency, and a sizable informal economy.",
    "Using a stochastic frontier model for 154 countries, the paper estimates tax potential at about 21 percent of GDP, implying a tax gap of around 3½ percent of GDP.",
    "Empirical approach: stochastic frontier model applied to 154 countries.",
    "Coverage: analysis focused on tax potential and reform options for North Macedonia.",
    "Publication specifics:",
    "Authorship and date:",
    "VAT base broadening.",
    "Rationalized CIT incentives.",
    "More progressive PIT.",
    "Higher environmental and health excises.",
    "Stronger property taxation.",
    "Improved tax administration.",
    "Subject: Expenditure, Fiscal policy, Revenue administration, Revenue mobilization, Revenue performance assessment, Tax gap, Taxes, Value-added tax",
    "Keywords: Domestic Revenue Mobilization, Global, IMF country, IMF staff, issues paper, Middle East, North Macedonia, paper estimate, Revenue mobilization, tax expenditure, Tax Gap, Tax Potential, Value-added tax",
    "**Tax Potential in North Macedonia; IMF Selected Issues Paper No. 2026/049; May 12, 2026**"
  ],
  "related": [
    {
      "title": "Tax Potential in North Macedonia; IMF Selected Issues Paper No. 2026/049; May 12, 2026",
      "role": "document",
      "sourceUrl": "https://www.imf.org/-/media/files/publications/selected-issues-papers/2026/english/sipea2026049.pdf",
      "summary": {
        "path": "/-/media/files/publications/selected-issues-papers/2026/english/sipea2026049.pdf.md",
        "mime": "text/markdown"
      },
      "binary": {
        "path": "/-/media/files/publications/selected-issues-papers/2026/english/sipea2026049.pdf",
        "mime": "application/pdf"
      }
    }
  ],
  "alternates": {
    "markdown": "/en/publications/selected-issues-papers/issues/2026/06/22/tax-potential-in-north-macedonia-577143/index.md",
    "json": "/en/publications/selected-issues-papers/issues/2026/06/22/tax-potential-in-north-macedonia-577143/index.json",
    "bundleManifest": "/en/publications/selected-issues-papers/issues/2026/06/22/tax-potential-in-north-macedonia-577143/bundle-manifest.json"
  },
  "generatedAtUtc": "2026-09-20T22:33:43.081Z"
}