Tax Reform in Economies in Transition: A Brief Introduction to the Main Issues

Abstract:     
The transition from a command to a market economy requires profound reforms of the tax system. Such a transition will put downward pressures on the level of taxation at a time when public expenditure remains high. This paper outlines the main characteristics of the tax systems in centrally-planned economies. It describes recent changes in those tax systems. Finally, it discusses the major difficulties that will be faced, and the errors that must be avoided, during the transition.

Number of Pages in PDF File: 28

JEL Classification: 027, 052, 323

working papers series