PhD in Economics, Associate Professor of the Finance Department of
Kyiv National University of Trade and Economics
FISCAL EFFICIENCY OF THE UKRAINIAN TAX SYSTEM
Background. The state should provide an appropriate tax policy, aiming to ensure the sufficient level of budget revenues and to fulfill its own functions and tasks as well. The fiscal mechanism should be used in a manner that does not reduce the economic agents’ confidence in the tax system.
The aim of this paper is to investigate and to deepen the methodological approaches to assess the domestic taxation system’s fiscal efficiency regarding the development level of the tax relations between the state and the economic agents.
Materials and methods. The theoretical and methodological basis of this research is presented by domestic and foreign economists’ scientific works devoted to the problem under consideration. Dialectical, systemic, and structural approaches, the methods of factor analysis, analytical estimation, economic-mathematical modeling, generalization, and scientific abstraction were applied.
Results. The theoretical and methodological approaches needed to determine the fiscal efficiency of the tax system were studied and developed. The tax burden on labor and consumption over the period from 2001 to 2017 was estimated. A comparative analysis of the respective indicators in Ukraine and in the EU member states was carried out. The main factors affecting the fiscal significance of VAT, excise tax, corporate income tax, and personal income tax were identified.
Conclusion. The tax system’s efficiency depends on the current tax structure, taking into account the taxation of productive resources and consumption as well as the destructive effects of taxation and the time lag effect. It was determined that in Ukraine, as a country with an emerging economy, the dominant fiscal role belongs to the consumption taxes. In order to increase the fiscal efficiency of corporate tax it is important to equalize the tax burden considering the types of economic activity. The high level of the taxes on wages and salaries income is one of the decisive factors increasing the shadow economy. Empirical experience evidences that the implementation approaches of the government regulatory policy in the area of establishing the minimum social guarantees should be transformed as well.
Keywords: fiscal efficiency, tax system, tax policy, taxes on consumption, taxes on labor, implicit rates, shadow economy.
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