Eastern Europe: Factors Underlying the Weakening Performance of Tax Revenues

Gérard Bélanger

No 1994/104, IMF Working Papers from International Monetary Fund

Abstract: 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.

Keywords: WP; GDP ratio; taxation; GDP; net profit; tax rate; net effect; subsidy mechanism; confiscation of enterprise profits; revenue performance; GDP to revenue; tax net; inflation tax; enterprise tax liabilities; trade tax; net revenue; Social security contributions; Effective tax rate; Consumption taxes; Inflation; Central and Eastern Europe (search for similar items in EconPapers)
Pages: 29
Date: 1994-09-01
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Citations: View citations in EconPapers (4)

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Persistent link: https://EconPapers.repec.org/RePEc:imf:imfwpa:1994/104

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