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Tax Reform in The Tax Reform Experiment in Transitional Countries

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The last decade has been witness to one of the largest tax experiments in economic history, the transformation from centrally-planned to market-based tax systems. The cultural and institutional legacy of central planning has had a lasting impact on tax reform in countries in transition. The fundamental choices for reform were a ‘big-bang’ approach or an evolutionary approach. With the benefit of hindsight, we can now evaluate the choices made and whether or not basic advice was heeded. The tax systems that have emerged are, at least in some ways, satisfactory in terms of tax policy but deficient in terms of tax administration and enforcement. Experiences with tax reform have been diverse, and in some countries there has been very little reform at all. We conclude by examining what lessons have been learned during the first decade of transition.

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  • Jorge Martinez-Vazquez & Robert McNab, 2000. "Tax Reform in The Tax Reform Experiment in Transitional Countries," International Center for Public Policy Working Paper Series, at AYSPS, GSU paper0001, International Center for Public Policy, Andrew Young School of Policy Studies, Georgia State University.
  • Handle: RePEc:ays:ispwps:paper0001
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    Cited by:

    1. James Alm & Jorge Martinez-Vazquez & Benno Torgler, 2005. "Russian Attitudes Toward Paying Taxes ? Before, During, and After the Transition," CREMA Working Paper Series 2005-27, Center for Research in Economics, Management and the Arts (CREMA).
    2. James Alm, 2018. "Is the Haig‐Simons Standard Dead? The Uneasy Case for a Comprehensive Income Tax," National Tax Journal, National Tax Association;National Tax Journal, vol. 71(2), pages 379-398, June.
    3. Frey, Bruno S. & Torgler, Benno, 2007. "Tax morale and conditional cooperation," Journal of Comparative Economics, Elsevier, vol. 35(1), pages 136-159, March.
    4. James Alm, 2019. "Can Indonesia Reform Its Tax System? Problems And Options," Working Papers 1906, Tulane University, Department of Economics.
    5. Crivelli, Ernesto, 2013. "Fiscal impact of privatization revisited: The role of tax revenues in transition economies," Economic Systems, Elsevier, vol. 37(2), pages 217-232.
    6. Mokhtari, Manouchehr & Ashtari, Mamak, 2012. "Understanding tax reform in the Central Asian Republics," Journal of Asian Economics, Elsevier, vol. 23(2), pages 168-178.
    7. Eric Manes, 2009. "Pakistan's Investment Climate : Laying the Foundation for Growth, Volume 2. Annexes," World Bank Other Operational Studies 12411, The World Bank.
    8. Torgler, Benno, 2011. "Tax morale, eastern Europe and European enlargement," Policy Research Working Paper Series 5911, The World Bank.
    9. Richard M. Bird, 2014. "Foreign advice and tax policy in developing countries," Chapters, in: Richard M. Bird & Jorge Martinez-Vazquez (ed.), Taxation and Development: The Weakest Link?, chapter 4, pages 103-144, Edward Elgar Publishing.
    10. Ernesto Crivelli, 2016. "Trade liberalization and tax revenue in transition: an empirical analysis of the replacement strategy," Eurasian Economic Review, Springer;Eurasia Business and Economics Society, vol. 6(1), pages 1-25, April.
    11. Benno Torgler, 2004. "Tax Morale, Trust and Corruption: Empirical Evidence from Transition Countries," CREMA Working Paper Series 2004-05, Center for Research in Economics, Management and the Arts (CREMA).
    12. Anna Alon & Amy Hageman, 2013. "The Impact of Corruption on Firm Tax Compliance in Transition Economies: Whom Do You Trust?," Journal of Business Ethics, Springer, vol. 116(3), pages 479-494, September.
    13. Gerxhani, Klarita & Schram, Arthur, 2006. "Tax evasion and income source: A comparative experimental study," Journal of Economic Psychology, Elsevier, vol. 27(3), pages 402-422, June.
    14. Klugman, Jeni & Micklewright, John & Redmond, Gerry, 2002. "Poverty in the Transition: Social Expenditures and the Working-Age Poor," CEPR Discussion Papers 3389, C.E.P.R. Discussion Papers.
    15. Ferrer-i-Carbonell, Ada & Gërxhani, Klarita, 2016. "Tax evasion and well-being: A study of the social and institutional context in Central and Eastern Europe," European Journal of Political Economy, Elsevier, vol. 45(S), pages 149-159.
    16. Apostol, Oana & Pop, Alina, 2019. "‘Paying taxes is losing money’: A qualitative study on institutional logics in the tax consultancy field in Romania," CRITICAL PERSPECTIVES ON ACCOUNTING, Elsevier, vol. 58(C), pages 1-23.
    17. Bruno S. Frey & Benno Torgler, 2004. "Taxation and Conditional Taxation," Working Papers 2004/7, Institut d'Economia de Barcelona (IEB).
    18. Bruno S. Frey & Benno Torgler, 2004. "Taxation and Conditional Cooperation," CREMA Working Paper Series 2004-20, Center for Research in Economics, Management and the Arts (CREMA).
    19. Ибрагимова Найля Мурадовна, 2015. "Эмпирическая Оценка Эффективности Ндфл И Ндс В Узбекистане," Higher School of Economics Economic Journal Экономический журнал Высшей школы экономики, CyberLeninka;Федеральное государственное автономное образовательное учреждение высшего образования «Национальный исследовательский университет «Высшая школа экономики», vol. 19(1), pages 81-103.
    20. James E. Payne & James W. Saunoris, 2020. "Corruption and Firm Tax Evasion in Transition Economies: Results from Censored Quantile Instrumental Variables Estimation," Atlantic Economic Journal, Springer;International Atlantic Economic Society, vol. 48(2), pages 195-206, June.
    21. James Alm, 2015. "Analyzing and Reforming Tunisia's Tax System," Working Papers 1515, Tulane University, Department of Economics.
    22. Despina Tumanoska & Bojana Josifovska & Marjan Petreski, 2019. "Good or bad tax? Assessing the early effects of the progressive and higher personal income tax in North Macedonia," Finance Think Policy Studies 2019-06/24, Finance Think - Economic Research and Policy Institute.
    23. Torgler, Benno, 2011. "Tax morale and compliance : review of evidence and case studies for Europe," Policy Research Working Paper Series 5922, The World Bank.
    24. Janet E. Milne & Mikael S. Andersen (ed.), 2012. "Handbook of Research on Environmental Taxation," Books, Edward Elgar Publishing, number 13862.

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