Defence Date



Galamay Roman Yaroslavovych


Transformation of the tax system of Ukraine in the conditions of local self-government reform


In the dissertation the theoretical generalization is made and practical
recommendations concerning development of tax system in the conditions of reform
of local government are developed. The paper proposes a comprehensive approach
to defining the tax system with an emphasis on arguing the need to realize the
internal potential of the tax in the direction of maximum balance of the main
components of taxation – concentration in budget revenues of maximum tax
revenues and promoting reproduction processes in business and entrepreneurship as
a subject of local self-government. The main functions of taxes as a key element of
the tax system of the state are defined. The diversification of the functional purpose
of the fiscal system is argued, which makes it possible to conditionally allocate
certain functions of the tax system.
The institutional bases of the development of the tax system in Ukraine in the
conditions of local self – government reform are substantiated. The problematic
aspects of the development of the tax system in Ukraine as of the beginning of the
local self-government reform have been identified. Strategic guidelines for the
development of the tax system in the context of local government reform in Ukraine
have been formed. It is determined that the development of the tax system in the
context of decentralization should be considered in three aspects: the coherence of
the interests of state and local budgets; ensuring financial self-sufficiency of local
self-government; certainty of the direction of development of the tax system at the
state level. The purpose of the reform is to build a tax system based on simplicity,
economic justice, minimizing the time spent on the calculation and payment of
taxes, aimed at creating conditions for sustainable development of the national
economy and ensuring sufficient filling of state and local budgets. The analysis of
normative-legal support of local self-government reform and its influence on tax
reform is carried out.
A methodical approach to assessing the tax effectiveness of OTG budgets is
proposed in order to rank them to justify the advantages and disadvantages of tax
development at the local level, identify trends and risks of communities and the
effectiveness of local governments to use their powers in the field of taxation. The
ways of development of the tax system in the direction of ensuring the financial
independence of territorial communities are substantiated. The analysis of
experience of development of tax system in the conditions of strengthening of local
self-government in the EU countries is carried out. Conceptual bases of
development of tax system in the context of strengthening of financial capacity of
local government on the basis of the certain problems of development of tax system
are offered. The main directions of development of the tax system in the context of
strengthening the financial capacity of local self-government are substantiated:
strengthening the role of local taxes; establishing effective interaction of local
governments with economic entities operating in the territory to increase budget
revenues; ensuring fair distribution of the tax burden and its reduction while seeking
budgetary compensators; strengthening tax control; ensuring effective outreach and
interaction between local governments and taxpayers. The institutional aspects of
forming an effective taxation system at all levels of government in the state and
strengthening the role of local self-government are identified: compromise,
complementarity, stability and gradual development, flexibility and innovation. A
model of self-taxation of OTG population as a tool of cooperation between local
self-government and the population of the territorial community is developed,
according to which residents are involved in accumulation and distribution of tax
resources, in particular in self-selection of projects for financing, setting conditions
and standards of self-taxation. The basis of the proposed model is the accumulation
of financial resources on a parity basis: the contribution of local governments is
determined at a level not lower than the amount contributed by residents to finance
selected projects.
Key words: tax system, transformation of tax system, local self-government,
reform of local self-government, united territorial community, local self-government
bodies, decentralization.

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Autosummary File