Tax Expenditures in Local Taxes - an Effective Instrument of Local Tax Policy? The Example of Poland

This study examines the size and diversity of tax expenditures (TEs) by gminas (municipalities) in Poland between 2007 and 2019. Consequences of gminas' taxing power and the reduction of revenues resulting from statutory tax preferences were taken into account. To analyze the data, we used: scatter graphs (showing the relationship between two selected variables) and plot graphs (showing the course of the values of the studied variables over time, to show the dynamics of the phenomena). The scatter graphs showed, sometimes strong, linear correlative relationships. No clear curvilinear relationships were found, therefore we applied Pearson correlation. Gminas used TEs to a small but also highly variable extent. The factors determining their use involved: the type and potential of the gmina; the type of local tax. The research hypothesis was partially positively verified. The increase in the incremental % of TEs' share in tax revenue has a positive impact on the incremental trend of revenue growth in the following year. The use of TEs in real estate and vehicle taxes may have strengthened the revenue potential of some gminas in the consecutive years.

Analisis Bibliometrik Atas Penelitian Belanja Perpajakan (Tax Expenditures) Menggunakan Aplikasi VOSViewer

Belanja perpajakan menyebabkan berkurangnya penerimaan pajak dari wajib pajak tertentu. Tujuan dari ketentuan belanja perpajakan adalah untuk mencapai tujuan sosial dan tujuan ekonomi. Hal ini telah menarik banyak cendekia untuk melakukan studi terkait belanja perpajakan. Pada penelitian ini, analisis bibliometrik dilakukan atas artikel penelitian yang dipublikasikan di jurnal yang terindeks Scopus selama tahun 2001 – 2021 (periode 20 tahun). Penelusuran artikel menggunakan aplikasi Publish or Perish. Hasil penelusuran diseleksi menggunakan aplikasi Mendeley dan diperoleh 52 artikel. Selanjutnya, artikel terpilih dianalisis dengan aplikasi VOSviewer. Hasil analisis menunjukkan 52 artikel tersebut dapat dikelompokkan menjadi empat klaster. Keempat klister tersebut mewakili empat arus penelitian belanja perpajakan. Kata kunci yang paling sering muncul di tiap klister adalah ‘spending’, ‘tax expenditure’, ‘contribution’, dan ‘tax credit’. Tax expenditures have reduced government tax revenues from certain group of taxpayers. The purpose of tax expenditure provisions is to achieve social and economic objectives. It has attracted many scholars to conduct studies related to this field. For this work, a bibliometric analysis was conducted on research papers published in Scopus indexed journals during 2001 – 2021 (20 years period). Searching for research papers was done using Publish or Perish software. The results were refined with Mendeley software and 52 articles were obtained. The selected articles were analyzed using VOSviewer software. The results of the analysis showed that the 52 research papers can be grouped into four clusters. The four clusters represent four streams of research in tax expenditures. The keywords that occured most frequently in each cluster were 'spending', 'benefit', 'contribution', and 'tax credit'.

When Harmful Tax Expenditure Prevails over Environmental Tax: An Assessment on the 2014 Mexican Fiscal Reform

This article examines the role of environmental taxation in mitigating environmental problems and contributing to sustainability in Mexico. It focuses on environmental tax revenues and tax expenditures since the 2014 Public Financial Reform (PFR), according to pro- or anti-environmental orientation. The research carried out combines the study of the regulation of the selected tax instruments, their classification and the empirical analysis of the tax revenues and tax expenditures associated with the different taxes over the periods of validity of the taxes and benefits studied, using the databases of the CIAT and the Mexican SHCP. A critical analysis addresses the weak environmental function of environment-related taxes (IEPS, ISAN…), as well as the late implementation and reduced impact of the carbon and pesticide taxes introduced in 2014. The evolution of tax incentives and expenditure is thoroughly examined by examining both environmental measures, which have evolved positively but within a very reduced level, and the most prevalent tax expenditure measures, with harmful impacts to the environment. Based on the results obtained, long-term structural changes in the Mexican tax system are suggested. As for the short to medium term, profound changes in tax expenditure are proposed to eliminate of those tax benefits harmful to the environment, introduce of tax benefits for circular activities (e.g., repairing, reusing and remanufacturing) and broaden the carbon tax base and rates. The conclusions include recommendations for moving towards a systemic green tax reform that assists the transformation towards a sustainable economy.

Justification of the expenditure of using the concept of tax expenditure in the preferential policy

The article theoretically substantiates the feasibility of implementing the concept of tax expenditures in Ukraine. It is proved that one of the problems of the economy is an unreasonable approach to the application of tax benefits, which leads to a significant budget deficit in Ukraine. The losses of EU budgets by the method of lost budget revenues are analyzed. The historical experience of realization of the concept of tax expenses is generalized. The requirements are highlighted and the main approaches to the basic structure of taxes are described. The foreign experience of determining the basic structure of taxes, the method of estimating tax expenditures and the method of accounting for tax expenditures are generalized. Based on the study of foreign experience, it is proposed to implement the concept of tax expenditures in Ukraine at the following stages: improvement of tax legislation; providing a legislative definition of the concept of "tax costs"; systematization of all expenses that will be included in tax expenses; choice of methods of collecting and analyzing information on tax expenditures; substantiation of the method of assessment and accounting of tax expenses; determining the order of reporting on tax expenditures; assessment of the effectiveness of tax expenditure management; application of evaluation results in the budget process. Signs of classification of tax expenses are singled out. It is proved that the main method of estimating tax expenditures is the method of lost budget revenues. The advantages and disadvantages of methods of accounting for tax expenditures are summarized. The models of reporting on tax expenditures are described. Groups of criteria for the effectiveness of tax expenditures are identified. The positive and negative sides of the concept of tax expenditures are substantiated.

Problems of Innovative Science and Technology Center Financing From Budgetary Funds

This article attempts to identify and analyze the problems of financial support for the creation and functioning of innovative science and technology centers (ISTCs) at the expense of the budgetary system of the Russian Federation which require their solution, in particular through improving legislation. The article provides an overview of the legal problems associated with the creation of ISTCs, the determination of the effectiveness of the Russian Federation’s tax expenditures on activities of the ISTCs, and the assessment of the volume and permissible directions of budget financing of the ISTCs. Conclusions are made about the absence of any formal criteria for support, or refusal to support, proposals to create an ISTC presented by the project initiator, including those related to the financial and economic justification of the requested amount of funds from the budgets of the budgetary system of the Russian Federation, as well as about the biased nature of budgetary efficiency calculation for Russia’s tax expenditures on activities of the ISTCs. The paper also contains proposals on possible mechanisms for determining and assessing the validity of financial support for ISTCs from the federal budget declared by project initiators.