STRATEGIC DIRECTIONS OF TAX REGULATION OF ECONOMIC DEVELOPMENT IN THE CONDITIONS OF REFORMS


Keywords: local taxes, tax instruments, tax incentives for community development, taxation mechanisms, personal income tax.

Abstract

Topicality. In the current reforms of the national economy, there is a need to solve scientific problem of system substantiation and institutional consolidation of strategic directions of stimulating of the productivity increase of economic activity in the country with the use of such effective regulators as taxes. The topicality of the issue is caused by changes in the field of taxation, administration and management of mesolevel territorial economic subsystems, by significant structural changes in the sectors of the national economy management and by the search for effective niches for smart specialization. Tax regulation of economic development is one of the most effective mechanisms of modifying the impact on the state, dynamics, structure and most qualitative indicators of the national economic system. But for the effective application of the tools of tax regulation of economic development in the context of reforms in Ukraine it is necessary to substantiate the general scientific and institutional principles for improving the use of taxes as regulators of gradual growth and of business productivity with simultaneous reduce of unproductive tax losses from non-targeted tax benefits and allowances.
Aim and tasks.. The purpose of the article is to substantiate the theoretical, conceptual and institutional provisions for improving the efficiency of tax regulation of economic development of the national economic system in the context of increasing business productivity and promoting the welfare of society under the influence of modern reforms.
Research results. The interrelation between tax instruments and strategic tasks of economic development of territories in the conditions of reforms is proved. The strategic directions of tax regulation of economic development in Ukraine in modern conditions are determined. The main components of the system of institutional support for the implementation of tax regulation, which determines the strategic directions of stimulating the development of the national economy. Based on the analysis of the structure of local budget revenues in Ukraine in recent years, the importance of the personal income tax for the development of local communities in the context of reform has been proved. The application of regulatory procedures with the use of personal income tax is proposed, despite the fact that this tax is not a local tax, but its importance for the development of local communities in the current conditions of local government reform is crucial. The essence of direct and indirect methods of tax regulation of economic development of territorial communities in the context of increasing of their functioning productivity is revealed. It is proposed to use compensation and organizational mechanisms, as well as the mechanism of practical implementation of this measure as measures to improve the institutional foundations of tax regulation of economic development in the context of reforms. Their essence and sphere of influence of efficiency of their actions are revealed. To implement the strategic direction of reducing tax losses and inefficient benefits, to increase the investment and innovation orientation of tax benefits, to substantiate the use of taxes as investment stimulants it is proved the need for targeted tax benefits use, which provide discounts for investment orientation, and in those cases, for such purposes provide special conditions for reinvestments of profit in the economic turnover of domestic enterprises that are to be exempted from general taxation.
Conclusions. The strategic directions of tax regulation of economic development of the territories of Ukraine in the conditions of reforms are defined in this article and should be taken into account in order to increase business productivity and promote welfare of society under the influence of modern reforms. Thus, as the study showed, scientific and methodological recommendations for improving of the institutional framework of tax regulation of economic development in Ukraine in the context of reforms are still under development and formation, especially for tax incentives for the production of goods and services with high added value.

Author Biographies

O.I. LAIKO

Dr. Econ. Sciences, senior researcher
vice-director for scientific work
Institute of Market Problems and Economic&Ecological Research
of the National Academy of Sciences of Ukraine,
Frantsuzkyi boulevard, 29, Odesa, Ukraine, 65044

Т.V. UMANETS

Dr.Sc. (Economics), Prof., acting head of department of development of entrepreneurship
Institute Of Market Problems and Economic&Ecological Research
of the National Academy Of Sciences Of Ukraine,
65044, Frantsuzskiy Boulevard, 29, Odesa, Ukraine

N.L. SHLAFMAN

Dr. Econ. Sciences, senior researcher, leading researcher
Institute of Market Problems and Economic&Ecological Research
of the National Academy of Sciences of Ukraine,
Frantsuzkyi boulevard, 29, Odesa, Ukraine, 65044

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Published
2021-03-20
How to Cite
LAIKO, O., UMANETSТ., & SHLAFMAN, N. (2021). STRATEGIC DIRECTIONS OF TAX REGULATION OF ECONOMIC DEVELOPMENT IN THE CONDITIONS OF REFORMS. Economic Innovations, 23(1(78), 115-125. https://doi.org/https://doi.org/10.31520/ei.2021.23.1(78).115-125