Evaluating the Consequences of Reform of Ukrainian Tax System in the Context of Tax Burden Indicators

Abstract

The article is aimed at analyzing changes in the tax system of Ukraine that occurred as a result of its reform, in the context of its general characteristics such as the tax burden on the economy, the factors of production and consumption. In the process of researching the tax system along with the computation of its main indicators (tax rate, share of labor taxes, capital and consumption in GDP and implicative rates of specified tax groups), based on the use of methodological and methodical approaches of the European Commission, and their statistical analysis, widely using the method of comparative analysis – comparison of Ukraine’s tax system with the tax systems of post-socialist countries of the EU (EU-11). According to the research, it is determined that the tax reforms that were conducted in Ukraine during the period of 2010–2019 resulted in: reduction of the total level of tax burden on the economy, which was held due to the reduction of the share of GDP, which is redistributed through the single social contribution; reduction of the tax burden on the «labor» production factor to the level lower than the intermediate level in the EU-11 countries and in most countries of this group; shifting the tax burden from capital to consumption, manifested in the balance between the implicit rates of the respective tax groups: if the tax rate in 2014 is greater than the implicit rate of taxes on consumption, then from 2014 the situation is changed to the opposite, which testifies to positive structural changes in the tax system of Ukraine, which are considered more favorable for economic growth.

Keywords

• tax burden
• tax coefficient
• implicit tax rate on labor
• capital and consumption