Abstract:

States benefit from tax policy in order to resolve the poverty occurred for various reasons and increase the impact of income transfers to the poor people. This study examined tax policies which is effective in fighting against poverty. These policies can be effective in the event of well-planned tax laws against poverty, a successful tax administration and low informality. Tax policies are used for correction of income distribution, protecting workers from poverty and employment creation. According to the assessment and evaluation, it can be seen that poverty can be reduced or controlled through tax policy implementation. However, while these policies were particularly effective in developed countries, they has not caught the desired success in the less developed and developing countries.

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