REFORMING THE TAX SYSTEM OF UKRAINE: PROBLEMS AND PROSPECTS

Abstract

Reform of the tax system is a key issue for the further development of the state's economy. The effectiveness of the tax system depends on the activity of all the main areas of the economy, the development of entrepreneurship and the satisfaction of both the basic needs of the state and individual citizens. Despite the fact that the tax system in Ukraine is constantly being reformed and improved, it is not efficient enough. The purpose of writing a scientific article is to highlight current problems and directions for improving the state's tax system. Formation of proposals for improving the mechanism of its functioning and directions for reforming the modern tax system of Ukraine. In accordance with the set goal, we outlined the following tasks: to identify the main problems of the modern taxation system, to identify directions for their solution, taking into account the experience of foreign countries, as well as to propose measures for its reform by both changing the existing legislative framework in the state and the accumulated theoretical and practical experience in the field of taxation. Taking into account the experience of foreign countries, the transformation of the tax system should consist in optimizing the needs for tax revenues with the possibilities of their receipt. In some countries, the number of local taxes is quite significant: in France – more than 50, in Italy – more than 70, in Belgium – more than 100 taxes and fees. The analysis of the structure of taxes shows that in Ukraine, most of the revenues to the budget are made up of indirect taxes, namely value added tax and excise tax. Thus, in 2021, VAT accounted for 50.69% of all budget revenues, excise tax – 15.64%, personal income tax – 21.33%, corporate income tax – 9.25%. In the countries of the EU and the USA, the majority of revenues to the budget are direct taxes. Taking into account the experience of foreign countries, the following basic principles will become a possible basis for the construction and functioning of the tax system: – the principle of simplicity: minimization of the costs of paying taxes, simplicity of their calculation, reduction of administration time, convenience; – the principle of social justice: the tax system must strive to solve social problems; – the principle of economic efficiency: compliance of tax rates with the economic development of the state. The main guideline for the further reform of the tax system should be the establishment of the optimal level of the tax burden to stimulate economic growth. A positive effect will be the introduction of measures to improve the tax control system, create conditions that make it impossible to evade tax obligations, limit the use of tax benefits, as well as ensure the optimal distribution of seized funds, which requires further research and the development of the theoretical and methodological foundations of the mechanism of their implementation.