Modelling Personal Income Tax Under Inflationary Conditions: The Case of Ukraine

Abstract

Many of the countries in transition from a formerly socialist to a market-oriented economy are facing high inflation today which, apart from its economic effects, tends to obscure statistical information and forecasting. Nevertheless, governments are obliged to determine the scope for their activities in advance and in the light of expected budgetary resources. This requires forecasting techniques for public revenues that are tailored to such circumstances taking inflationary trends properly into account.