The Tax Regulation System in Transformational Economy

Abstract

The article is aimed at substantiating the directions of development of the tax regulation system for the medium term, taking into account the peculiarities of the transformational economy. The article analyzes the tax burden in the countries of the sample of Central and Eastern Europe for the period 2006-2019. A higher level of tax burden than in Ukraine is recorded for Slovenia and Hungary. The rating and indicators of Central and Eastern European countries in the Paying Taxes 2020 rating are studied. The expediency and measures to improve Ukraine’s position in the above mentioned rating are substantiated, in particular in terms of reducing the time costs of paying taxes and filling in tax reports. The possibilities of increasing the effectiveness of the tax regulation system in terms of optimizing tax expenditures are estimated. For countries with a transformational economy, it is advisable to use a proportional scale of taxation, because its differentiation increases the cost of administration and creates additional opportunities for manipulation and tax avoidance by certain payers. The need for tax incentives for research and innovation activities in the context of transformational economy is substantiated. In order to ensure sustainable economic growth, directions for increasing the level of socio-economic development of territories and increasing the fiscal capacity of local budgets are proposed.

Keywords

• tax regulation
• tax policy
• taxes
• administration of taxes
• tax burden