№ 2/2018

Fìnansi Ukr. 2018 (2): 109–128

TAX POLICY

YUSHKO Serhii ¹

¹Simon Kuznets Kharkiv National University of Economics
OrcID ID : https://orcid.org/0000-0001-6323-7687

Using the tax rate as an instrument of providing growth of budget revenues in Ukraine

The formation of revenues of the state and local budgets remains an extremely relevant problem for Ukraine. The volumes of funds concentrated in budgets are extremely insufficient for the state and local government and self-government to perform their functions properly. Under these circumstances, the legislator constantly resorts to the search for various ways to fill the state and local budgets. One of such tools is the periodic review of the tax rates, conditions and rules for their application. It is established that the main receipts of the state and local budgets in Ukraine are provided by taxes and fees, on which ad valorem interest rates are set, which is in line with the interests of taxpayers and the state. The significance of payments charged at specific rates is relatively less. It is found that the use of specific rates has no advantages for tax subjects: the rates are regularly reviewed by the legislator, and specific interest rates are automatically adjusted when the basic indicators for their calculation are changed. To preserve and increase budget revenues, the legislator also uses other methods, including the adoption of fixed rates, the application of special adjustment factors for individual tax rates (in particular, with regard to the rent for some of its components, the excise tax on certain types of light and heavy distillates), manipulations with the subsistence level and the minimum wage, etc. It is established that the indicators of the subsistence level and the minimum wage have an ambiguous impact on the formation of budget revenues. On the one hand, their growth provides an automatic increase in tax revenues, the rates of which are approved as a percentage of these indicators, and, on the other, due to the peculiarities of the collection of personal income tax, leads to a shortfall in part of the budget revenues for such a payment. The author highlights that in the future, it is necessary to abandon the current, distorted approach to the formation of the subsistence level. According to the results of the research, the author arrives at the conclusion on the importance of harmonizing the interests of the state and taxpayers in resolving issues of establishing taxes and fees, approving the types and sizes of tax rates.

Keywords:tax rate, specific tax rate, ad valorem tax rate, budget revenues, subsistence level, minimum wage

JEL: E24, E25, H21, H22

YUSHKO S. . Using the tax rate as an instrument of providing growth of budget revenues in Ukraine / S. YUSHKO // Фінанси України. - 2018. - № 2. - C. 109-128.

Article original in Ukrainian (pp. 109 - 128)

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