Conceptual approaches to improving carbon dioxid taxation in Ukraine

The domestic carbon tax needs to improve tax administration to ensure its fiscal efficiency and reduce transaction costs for tax compliance. Despite the fact that in the Tax Code of Ukraine the calculation of such a tax is based on the actual indicators of CO2 emissions, in practice it is based on the amount of resources consumed and the characteristics of the production process. Accordingly, the difficulties in administering this tax are the complexity of tax audits and the need to involve environmental experts. All this does not allow to adhere to the principle of cost-effectiveness of taxation and highlights the need to find opportunities to simplify the process of tax administration on the basis of world best practices. The purpose of the article is to outline conceptual approaches to improving carbon taxation, which will allow Ukraine to simplify tax administration and together with the EU to effectively combat the effects of climate change in order to increase security and create new opportunities for Ukrainian business under the European Green Deal. The methodological basis of the study was the use of a set of general and special methods: generalizations and scientific abstraction, historical and logical, extrapolations, spatial and graphical and tabular methods of visualization. The application of the SWOT analysis method and the systematization of European practice revealed that the most acceptable for Ukraine is the use of tax on CO2 emissions in the form of an indirect tax on energy consumption. Coefficients of carbon content in fuel, calorific value of fuel and its oxidation factor were used to convert the emission base carbon tax into the fuel base carbon tax. The implementation of these proposals will help increase the efficiency of administration of such a tax, as it will: 1) reduce the number of taxpayers through the introduction of the institution of tax agents while increasing the amount of tax paid by one taxpayer; 2) simplify the procedure for calculating the tax base by taxpayers and employees of tax authorities; 3) increase the fiscal efficiency of the environmental tax on carbon dioxide emissions from stationary sources by 50% in the case of setting the CO2 price at UAH 10 per ton (5-fold when setting the CO2 price at UAH 30 per ton in accordance with the proposals of the bill No 5600) and to attract potential revenues from the transport sector in the amount of 0.06% of GDP. The use of practical proposals and recommendations obtained in the article will increase the effectiveness of Ukraine's tax policy by forming a set of measures which will reduce the energy dependence of the national economy, including through incentives for energy-saving and climate-neutral technologies, reduce the burden on the environment, and will help simplify the administration of environmental taxes while increasing their fiscal efficiency. Research materials can be used in the preparation of draft regulations and policy documents in the field of environmental and excise taxation, which is within the competence of the Ministry of Finance of Ukraine, as well as in the formation of proposals, reservations and recommendations to other regulations on improving environmental and excise taxation initiated both by the authorities of the executive power of Ukraine, and the Verkhovna Rada of Ukraine on improving environmental and excise taxation. The theoretical results are the development of a general theory of fiscal administration for environmental and excise taxation.

Improving the mechanism of pit collection for community development in the context of decentralization

Problem setting. In the analysis of any budget, important markers are åðó revenue indicators, which 80% consist of tax revenues. After all, they give the government and citizens an understanding of how capable the communityis, what amount of expenditures can be made from income, and whether the community has can develop and improve the well-being of its inhabitants. Personal income tax (hereinafter – PIT) covers about 60% of tax revenues of local budgets of Ukraine, so its important role for socio-economic development of local communities and regionsis clear.Recent research and publications analysis. The issue of studyingthe effectiveness of the mechanism of PIT payment and its influence on the process of generation of local government revenues have been in the center of research of domestic scientists such as O. Bandurka, N. Dieieva, I. Liutyi, N. Redinaet al. At the same time, the issue of the effectiveness of PIT collection and its importance for the development of communities in the current conditions of decentralization requires further thorough research.Highlighting previously unsettled parts of the general problem. The role and place of personal income tax in the structure of tax revenues of local budgets have been studies in the paper, the essence of the mechanism of its collectionhas been substantiated, the provision on the effectiveness of tax control over the completeness of its revenues have been analyzedand the reasons for reforming its payment procedure by tax agents have been justified.The purpose of the paper is to study the role and place of PIT in the structure of tax revenues of local budgets, substantiate the essence of the mechanism of its collection, analyze PIT administration procedure, makeproposals for improving the effectivenessof fiscal role of this tax for the community development.Paper main body. One of the most important taxes in the system of direct taxation in Ukraine is the personal income tax. Its share in the structure of tax revenues of the consolidated budget in recent years was about 20% – 23% (90% of which – revenues to local budgets, 10% – revenues of the state budget).The procedure for imposition of this taxis regulated by Section IV of the Tax Code of Ukraine, deducted from the income of citizens at a rate of 18%, which applies to almost all types of income of citizens.In the structure of tax revenues of local budgets, its share is the largest one and averages up to 60% of all tax revenues. During the period of 2015 – 2020, the fiscal efficiency of PIT in the structure of its revenues to local budgets was growing every year. Nominal PIT revenues to local budgets increased from UAH 54,9 billion in 2015 to UAH 177,8 billion in 2020.The key factors influencing the nominal growth of personal income tax revenues are inflation, as well as the annual increase in the minimum wage, changes in tax rates and other innovations in tax reforms of the recent years.Given the significant fiscal efficiency of PIT and its influence on budget generation of the communities, we cannot ignore the problematic aspects of its collection that have a direct impact on tax revenues in the structure of the newly formed amalgamated territorial communities, since success and well-being of local communities depends primarily on the amount of financial resources they own.Thus, according to the Budget Code of Ukraine, PITis distributed among the budgets in the following amounts: 60% goes to the ATC budget, 15% to the regional budget, and 25% to the state budget.It is worthnoting that the current rules of tax and budget legislation contain quite clear obligations of tax agents to pay PITtransfers to those local budgets within which territory businesses are located.Nevertheless, there are constant challenges for local governments and their ability to influence entrepreneurs to pay PIT at the location of legal entities and their units, and not at the place of registration of legal entities.Does this mean that a significant number of tax agents do not comply with the requirements of tax and budget legislation?The Law of Ukraine on Local Self-Government in Ukraine (Article 28) entitles local self-government bodies to monitor the compliance with obligations to pay to the local budget at enterprises and organizations, regardless of the form of their incorporation.Conclusions of the research and prospects for further studies. Given the above, business entities are obliged to pay PIT in accordance with current legislation at the place of their actual location, regardless of the place of registration, and local governments are empowered to control the completeness of taxes coming to the local budget and must actively exercise the initiative to provide additional revenues to community budgets.This will allow receiving PIT revenues to the budget of the community where the enterprises directly carry out their activities in order to develop communities and increase their solvency for the welfare of citizens.

FISCAL AND SOCIAL DETERMINANTS OF PERSONAL INCOME TAXATION

Introduction. Direct taxes are an important financial regulator of socio-economic processes, they are one of the most important sources of budgeting and an essential tool of state regulation. The personal income tax is the main tax through which social policy is implemented in the developed countries of the world. The advantages of this tax include its social justice and fiscal efficiency, as it is able to make the level of taxation directly dependent on the amount of income of taxpayers. In addition, progressive tax rates and benefits can reduce the tax burden on the poor and increase it on high-income earners. The purpose of the article is to considerate the theoretical and practical aspects of administration of the personal income tax in the conditions of reforming of fiscal policy of Ukraine, systematization of directions of improvement of collecting of the personal income tax to local and state budgets. Methods. Methods of dialectical analysis and synthesis, deduction, induction logical generalization, comparison and formalization are used in the article. Results. The article is devoted to the study of the essence and role of personal income tax administration. Peculiarities of citizens’ income formation as an object of taxation are considered. Monitoring and analysis of indicators of personal income tax to local and state budgets was carried out. The growth rates of nominal revenues of personal income tax and military duty, real and nominal wages are studied. It was found that the main factors reducing the level of fiscal efficiency of personal income tax in Ukraine are the shadowing of incomes and the outflow of labor, including skilled personnel. Ukraine’s tax policy for the last five years is fiscally oriented and does not take into account the social aspect of personal income taxation. As a result of the research, the directions of increasing the efficiency of personal income taxation in Ukraine based on foreign experience are systematized. Prospects. The current model of personal income tax does not sufficiently perform a socioeconomic function, does not provide a socially equitable distribution of income between different segments of the population. In recent years, the fiscal significance of the personal income tax has remained, but the system of personal income taxation requires the application of progressive rates. Therefore, promising areas of future research should be the development and improvement of the mechanism of personal income taxation in the context of ensuring their socio-economic interests.

Udziały jednostek samorządu terytorialnego w podatkach państwowych

The aim of this paper is to explore the rationale for the reform of the shares of local government units (LGUs) in national income taxes in Poland as well as to evaluate the selected proposals for changes in this area. The paper begins by outlining the definition and the basic features of tax sharing in the context of fiscal federalism. The next section provides an overview of the tax shares operating in some OECD countries. The main part of the article focuses on the key principles of the tax sharing system in Poland. The author briefly examines the fiscal efficiency of this source of local revenue in different types of Polish LGUs and the most significant dysfunctions of Polish local tax shares. The final section investigates the most important proposals for the reform of tax sharing and discusses their advantages and disadvantages.

Wydajność fiskalna podatków lokalnych, jej uwarunkowania i przestrzenne zróżnicowanie w Polsce

The article focuses on the fiscal efficiency of local taxes which in Poland are levies on wealth, i.e., real estate tax, means of transport tax, agricultural tax and forestry tax. The author discusses the determinants of fiscal efficiency of local taxes. Special attention is given to the analysis and assessment of fiscal importance of these taxes for municipalities and cities with powiat status, and to the role of public revenues for local government budgets. The author also compares fiscal efficiency of local taxes from the point of view of various types of their recipients and different levels of local government in Poland.

Transformation of the tax system of Ukraine in order to facilitate the development of agricultural production

L. Barabash. Transformation of the tax system of Ukraine in order to facilitate the development of agricultural production The article deals with the state of functioning of agricultural production in Ukraine in modern times from the standpoint of economic, social and fiscal efficiency. A research has been made for directions of transformation of the tax system that are relevant in the conditions of the transitional economy of Ukraine, which in the near future and in the long term will encourage the industry to a brand new stage of development. Keywords: agricultural production, economic efficiency, social efficiency, fiscal efficiency, rural population, single tax, fixed agricultural tax.

Assessing the Personal Income Tax as a Fiscal Indicator

The article is aimed at examining the fiscal efficiency of personal income tax. It is proved that in order to simplify the administration of personal income tax, it is advisable to group the components of the total income of the taxpayer according to the relevant criteria. The results of the research once again testify to the fact that the most important role of personal income tax consists in regulating the cash (income) of the population and stimulating the use of labor force, as well as in being a significant source of income to the Consolidated Budget of Ukraine. To disclose the topic of the research, the authors calculated the fiscal significance of personal income tax in terms of the State budget, which tends to increase and the fiscal significance of personal income tax in terms of the GDP of the State. Also, the analysis of the efficiency of collecting tax revenues using a number of coefficients, one of which is the coefficient of personal income tax collection, is carried out. Having estimated the mobilized amount of personal income tax revenues and tax revenues to the budget from the planned ones, it is proved that the efficiency of personal income tax administration is quite significant and close to 1. That is, the level of expenditures of the population for the maintenance of apparatus of the State Tax Service of Ukraine decreases at a faster pace than the population itself, which can be considered as a positive point. As result of the carried out analysis of the fiscal efficiency of personal income tax, it is concluded that the tax administration under a certain system of implemented tax decisions is deteriorating, and the fiscal significance of personal income tax in both the State’s budget and GDP is reducing, while the real value of revenues from this tax is decreasing. Assessing the efficiency of personal income tax according to the above indicators will allow to more accurately plan the receipt of this tax to the budget, will facilitate in the development of measures to improve the regulatory and fiscal action of personal income tax, eliminate deficiencies in the taxation mechanism, form a rational structure of tax revenues to the budget, and contribute to the development of an efficient tax policy.