Economic analysis of fiscal and non-fiscal costs of arms registration and the issue of non-registered arms

Abstract

Large number of unregistered arms that citizens of Serbia hold in possession represents a significant social problem. This paper observes and analyses historical and legal factors that contribute to this problem, using the methods of economic and legal theory. In the paper the authors deals with legal norms that regulate the registration of arms (with a special emphasis on new solutions prescribed by the Law on Arms and Ammunition), as well as the fiscal and non-fiscal costs of registration borne by the citizens of Serbia. In regard to nonfiscal costs, it is relevant to mention the costs for medical examination, the cost for training in handling the weapons, as well as the complex legal procedure whose implementation by definition is the transaction cost. In regard to fiscal costs, different fees, as well as tax on registered arms are under analysis here. The main hypothesis is that the legal frame that for regulation of registered arms has a destimulative effect on citizens to transfer arms from illegal to legal flows.

Keywords

• unregistered arms
• legalisation of unregistered arms
• tax on registered arms