Demography and social economy, 2016, 1(26):11-18
doi: https://doi.org/10.15407/dse2016.01.011

M.I. Karlin
D-r of Science (Economics), Professor
The Head of the Department of finances and taxation
Lesya Ukrainka Eastern European National University
Volya Avenue, 13, Lutsk, 43025, Ukraine
E-mail: Karlin.Lutsk@gmail.com

IMPROVEMENT OF THE FISCAL SYSTEM IN THE CONTEXT OF ІMPROVEMENTS TERRITORIAL SOCIO-DEMOGRAPHIC DEVELOPMENT
Section: TERRITORIAL SOCIAL AND DEMOGRAPHIC PECULIARITIES OF UKRAINE
Language: Ukrainian
Abstract: With the difficult economic situation in Ukraine in 2014–2016 in mind the article proposes changes in the taxation system of the country that would expand the financial opportunities of Ukrainian regions in the context of solving their social and demographic problems, using the experience of developed countries. The problems of tax financing mechanism of social and demographic development of the regions of Ukraine in modern conditions are revealed on the basis of the analysis of different positions of the Ukrainian scientists. The author establishes the need for a significant expansion of revenues to regional budgets from such taxes as corporate income tax and value added tax. Moreover, while allocating VAT between the center and the region the share of the region population to the country’s population needs to be taken into account. The author assesses negatively the proposal of replacing VAT with a sales tax, as the sales tax has more disadvantages than VAT. To increase the possibilities for financing the socioeconomic development of regions in Ukraine it would be necessary to change the mechanism of using property taxes, focusing on the experience of the United States. Corporate income tax should be distributed between the state budget and regional budgets in the ratio of 50 : 50 %, which will change the situation in a positive way with the subsidized region. The author also believes that the large taxpayers have to pay taxes in the regions rather than in their central office in Kiev, which will significantly increase the financial capacity of the regions. The author considers it as a mistake, in demographic terms, to assign the excise tax to the territorial communities, because this has increased the interest of local authorities in locating on their territories the enterprises that are selling alcohol and tobacco products. In general, in Ukraine it is necessary to assign to the regions at least 50 % of tax revenues, which will allow them to use its resources more effectively for demographic and other social problems in the regions of the country.
Key words: Ukraine tax system, value added tax, sales tax, income tax, excise tax, property tax, region, community, mortality, wage inequality.
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