IMF Working Papers

Eastern Europe: Factors Underlying the Weakening Performance of Tax Revenues

By Gérard Bélanger

September 1, 1994

Preview Citation

Format: Chicago

Gérard Bélanger. Eastern Europe: Factors Underlying the Weakening Performance of Tax Revenues, (USA: International Monetary Fund, 1994) accessed September 26, 2024
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.

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

Keywords: Central and Eastern Europe, Confiscation of enterprise profits, Consumption taxes, Effective tax rate, Enterprise tax liabilities, GDP, GDP ratio, GDP to revenue, Inflation, Inflation tax, Net effect, Net profit, Net revenue, Revenue performance, Social security contributions, Subsidy mechanism, Tax net, Tax rate, Taxation, Trade tax, WP

Publication Details

  • Pages:

    29

  • Volume:

    ---

  • DOI:

    ---

  • Issue:

    ---

  • Series:

    Working Paper No. 1994/104

  • Stock No:

    WPIEA1041994

  • ISBN:

    9781451947908

  • ISSN:

    1018-5941

Notes

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

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