Problemi Ekonomiki (Sep 2018)
Evaluation of Taxable Capacity of an Administrative-Territorial Unit
Abstract
The aim of the article is the revealing of the essence of taxability capacity of an administrative-territorial unit, further development of the methodological basis for assessing taxable capacity of local budgets in the context of fiscal decentralization. The typical domestic and foreign methodological approaches to defining taxable capacity and indicators of taxability of a budget are analyzed. The role of tax instruments in the development of territories is characterized as a system of fiscal mechanisms for pumping up, stimulating and / or restricting the budget, which are implemented in order to provide financial support for the development of relevant entities and the overcoming of their undesirable economic divergence. There proposed provisions for assessing taxable capacity of territories on the basis of an additive model that combines the capacity of local taxes and fees. The potential growth of revenues from personal income tax, tax on real estate other than land plots, land tax, rent, single tax is investigated. The implicit rate of the personal income tax in Ukraine and Kiev is estimated, some features and reasons for the differentiation of these values are determined. The features of the impact of the personal income tax in terms of proportional distribution between the state and local budgets are identified. The limits of growth of tax revenues to local budgets and factors influencing them are determined. The observance of the principles of continuity, complex adaptability, stability, and logical consistency for the purpose of harmonizing redistributive processes at the level of local budgets is proposed. The priority directions for increasing the level of taxability of the budgets of administrative-territorial units in the context of further institutional transformations of the domestic budget system are substantiated.
