CRITICAL ASPECTS OF DESIGNING TAX POLICY IN ACCORDANCE WITH WTO PRINCIPLES

Abstract

This conference paper examines the critical aspects of designing national tax policy in accordance with the principles of the World Trade Organization (WTO). In the context of globalization, increasing international trade integration, and the growing role of tax competition, WTO-compatible tax policy has become an important prerequisite for sustainable economic development and successful participation in global markets. The study analyzes the theoretical foundations of WTO-oriented tax policy, including the principles of non-discrimination, transparency, neutrality, national treatment, and most-favored-nation treatment. Particular attention is paid to the relationship between indirect taxation, especially value-added tax (VAT), customs duties, border tax adjustments, and trade liberalization. The paper also evaluates the challenges faced by developing and transition economies in adapting domestic tax systems to WTO standards. Using comparative and institutional analysis, the research identifies key policy directions for improving tax administration and reducing trade distortions while maintaining fiscal sustainability. The findings indicate that effective tax policy design within the WTO framework requires balancing revenue generation objectives with international competitiveness, investment attractiveness, and equitable taxation principles.