Eastern Europe: Factors Underlying the Weakening Performance of Tax Revenues

Author/Editor:

Gérard Bélanger

Publication Date:

September 1, 1994

Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

Summary:

The paper analyzes the decline of tax revenue/GDP ratios in transition economies of central and eastern Europe. The paper separates the effect on revenues of discretionary policy actions and finds that endogenous factors, notably the collapse of underlying profits and declining effective tax rates, were the main source of falling tax revenue/GDP ratios. Underlying factors are analyzed to provide a basis to discuss the outlook for tax revenues in coming years.

Series:

Working Paper No. 1994/104

Subject:

Consumption taxes Effective tax rate Inflation Prices Revenue administration Social security contributions Tax policy Taxes

Notes:

Discusses Albania, Bulgaria, Czech Republic, Hungary, Poland, Romania, Slovak Republic, and the former Czechoslovakia.

English

Publication Date:

September 1, 1994

ISBN/ISSN:

9781451947908/1018-5941

Stock No:

WPIEA1041994

Pages:

29

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