The Political Economy of Taxation in CIS Countries

Tax Policy Conference, p. 503, 2003

46 Pages Posted: 3 Jun 2012

See all articles by Luca Barbone

Luca Barbone

CASE - Center for Economic and Social Research; Institute for the Study of International Migration

Luis Alvaro Sanchez

affiliation not provided to SSRN

Date Written: April 3, 2003

Abstract

This note explores selected political economy aspects of taxation in Ukraine, compares that experience with Russia’s and draws some insights for the CIS region. Ukraine has been unable so far to carry out a comprehensive tax reform, while Russia has. The lessons drawn from comparing the political economy determinants of these two experiences provide valuable insights on the sustainability of reforms and similar experiences in other CIS countries. This note does not attempt to provide a comprehensive treatment of all these issues, but rather to advance some ideas that can help develop a more systematic look at the political economy of taxation in the region. The note begins with a brief overview of the introduction of modern taxation methods during the 1990s. The note shows why comprehensive reform became a necessity. It follows with a simple framework to consider the political economy issues of taxation in the region. Afterwards, the Ukrainian situation is examined in some detail with a focus on how the legislature has addressed taxation issues and the twin problems of tax arrears and tax exemptions. The note continues with a comparison with Russia’s successful experience at comprehensive tax reform. The paper concludes by considering the applicability of the insights obtained to other CIS countries as well as to understanding the sustainability of fiscal institutions in the long-term.

Suggested Citation

Barbone, Luca and Sanchez, Luis Alvaro, The Political Economy of Taxation in CIS Countries (April 3, 2003). Tax Policy Conference, p. 503, 2003, Available at SSRN: https://ssrn.com/abstract=2073435

Luca Barbone (Contact Author)

CASE - Center for Economic and Social Research ( email )

Al. Jana Pawła II 61/212
Warsaw, 01-031
Poland

Institute for the Study of International Migration ( email )

Whitehaven Street
Washington, DC
United States

Luis Alvaro Sanchez

affiliation not provided to SSRN ( email )

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