Transition from a planned to a market-oriented economy has proved to be a painstaking process for almost all Central and Eastern European countries. Nevertheless, it is perceived that market orientation brings about improved efficiency and favors efficient resource allocation through more developed and flexible price mechanisms.
The paper considers the farm tax system in Ukraine. It is no secret that Ukraine inherited extremely distorted economic system from the Soviet Union with artificial prices, inefficient firms, impractical legal system, and a numerous economic and administrative barriers for exchange of ideas, technologies and standards.