Key Questions in Considering a Value-Added Tax for Central and Eastern European Countries

Author/Editor:

Sijbren Cnossen

Publication Date:

July 1, 1991

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:

In the course of introducing a market-oriented tax system, most Central and Eastern European countries are actively considering the merits of a value-added tax (VAT). This paper examines a wide range of social, economic, structural, and administrative issues that are pertinent to the introduction of a VAT. These issues have regard to the burden distribution of the VAT, its effect on the price level and economic growth, as well as the coverage of the tax, the definition of the base, and the choice of the rate structure. Various legal and administrative aspects are also reviewed. The paper draws on the experience with value-added taxation of the member states of the European Community (EC) and other countries that belong to the Organisation for Economic Cooperation and Development (OECD).

Series:

Working Paper No. 91/69

Subject:

Notes:

Also published in Staff Papers, Vol. 39, No. 2, June 1992.

English

Publication Date:

July 1, 1991

ISBN/ISSN:

9781451960631/1018-5941

Stock No:

WPIEA0691991

Format:

Paper

Pages:

49

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