Dobrinsky, Rumen --- "Tax structures in transition economies in a comparative perspective with EU member states" [2003] ELECD 117; in Tumpel-Gugerell, Gertrude; Mooslechner, Peter (eds), "Structural Challenges for Europe" (Edward Elgar Publishing, 2003)

Book Title: Structural Challenges for Europe

Editor(s): Tumpel-Gugerell, Gertrude; Mooslechner, Peter

Publisher: Edward Elgar Publishing

ISBN (hard cover): 9781843764748

Section: Chapter 17

Section Title: Tax structures in transition economies in a comparative perspective with EU member states

Author(s): Dobrinsky, Rumen

Number of pages: 31

Extract:

17. Tax structures in transition
economies in a comparative
perspective with EU member states
Rumen Dobrinsky1

1. INTRODUCTION2

During the past decade and a half, the system of taxation ­ as well as the
fiscal system in general ­ in the transition economies has undergone enor-
mous changes. Generally speaking, these changes reflect the fundamental
transformation in the government's role in these countries: from what it
used to be in a centrally planned economy to what it is aiming to be in a
market environment. In the main, this has been a process of withdrawal of
the government from the economy, in terms of asset holding (governments
in socialist countries held the overwhelming share of productive assets),
direct control (such as the direct allocation of resources and centralized
price setting) and intervention (redistribution of income and wealth). In
some cases the process of state withdrawal has been more gradual, in others
rather abrupt; in any case, the changes in this direction are quite obvious
although the process is probably far from over.
Economic transformation has impacted profoundly on the fiscal systems
in the transition economies with respect to both the levels and structure of
revenue and expenditure. This chapter takes a brief look at some of the
changes that have taken place in the system of taxation in the economies
undergoing a transition from plan to market. It does so by comparing the
tax structures established in the transition economies after more than a
decade of reforms with those in mature ...