Bìznes Inform (Nov 2018)
The Tax Policy in Ensuring the Social Function of the State
Abstract
The Tax policy causes influence on implementation of the social function of the State during the collection of taxes through both fiscal and regulatory functions. The main instruments of influence are: 1) changes in the regime of taxation of social goods and services and 2) stimulation of the national economy entities through growth of the level of their expenditures for the development of society. The first approach is applied primarily in the taxation of value added tax and corporate income tax, the second is a form of promotion of investment in the form of tax incentives to obtain services in the field of education, professional training, health, etc. The complexity of the tax system is a deterrent to the implementation of the social function of the State, because the important condition for the efficiency of tax incentives is simplification of their use, including both the administration and the reporting procedures. An important role belongs to the institutional framework for harmonizing tax mechanisms, particularly in the area of indirect tax collection. In such a context, coordination of international relations to remove restrictions on the way of attracting investments and economic cooperation is an important component of the country’s socio-economic development.
