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

_IMF Working Papers, March 1, 1991_

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## Bibliographic details
- Authors: Vito Tanzi
- Published: March 1, 1991
- Series: IMF Working Papers
- DOI: https://doi.org/10.5089/9781451921052.001

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### Summary
- The transition from a command to a market economy requires profound reforms of the tax system.
- Transition will put downward pressures on the level of taxation at a time when public expenditure remains high.
- The paper:
  - Outlines the main characteristics of the tax systems in centrally-planned economies.
  - Describes recent changes in those tax systems.
  - Discusses the major difficulties that will be faced, and the errors that must be avoided, during the transition.

### Main characteristics of tax systems in centrally-planned economies (as outlined)
- Tax systems are shaped by the command economy context and state enterprise structures.
- Key tax-related subjects identified: National accounts, Personal income, Personal income tax, Revenue administration, Sales tax, Tax administration core functions, Taxes.
- Relevant tax instruments and concepts referenced: company profits, enterprise, incomes policy, market economy, profits tax, revenue statistics, Sales tax, state enterprise, tax system, value-added tax.

### Recent changes described
- The paper describes recent changes in the tax systems of centrally-planned economies (no further numeric detail provided on the page overview).

### Major difficulties and errors to avoid during transition
- The paper discusses:
  - Major difficulties that will be faced in reforming tax systems during the shift to market economies.
  - Errors that must be avoided during the transition from command to market taxation frameworks.
- Specific difficulties and errors are noted in the full working paper (page overview indicates topics but does not enumerate them here).

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_Source: https://www.imf.org/en/publications/wp/issues/2016/12/30/tax-reform-in-economies-in-transition-a-brief-introduction-to-the-main-issues-899_