Economic Integration and the Transformation of the Tax Mix: Cyprus 1990-2001
Jenkins, Glenn P.; Poufos, George G.
This paper outlines the steps that the Government of Cyprus took to transform its tax system between 1990 and 2001 in order to prepare itself for admission into the European Union. Cyprus has many of the same economic features as the countries of the Caribbean and Central American regions. In the case of Cyprus, the reforms were focused on the introduction and expansion of the Value Added Tax, a restructuring of the excise tax system and a modernization of its income tax system. By 2002 it has virtually completed the transformation process. The paper also discusses the situation of Belize, which is preparing to begin a similar transformation. Although the required changes might appear very large, a set of reasonable options are presented for consideration.