Abstract
Effective system of local self-government is a key to the successful development of a democratic state. It should be aimed at ensuring the effective performance of functions by the authorities, creating environment for obtaining quality services by citizens, and introducing and expanding the system of local taxes.Local taxes make the financial basis for the activities of local self-government bodies. However, nowadays, the lack of their volume and revenue instability are considered as a matter of national concern. Funding of state delegated powers, which is mainly due to transfer payments, is characterized by the delayed receipt of revenues and the lack of revenue in terms of targets, thereby creating problems with financing from local budgets.The article investigates the essentials of local taxation in the system of local budgets in Ukraine. It also summarizes methodological approaches to determining the nature of local taxes, clarifies their fiscal role in the local tax system and local budgets, and analyzes the existing practice of formation and implementation of local taxes in local budget revenues. Besides, prospective lines of improvement of the local taxation system are investigated and recommendations for its development are elaborated. Also, the subject to reform of the system of tax and budgetary relations was substantiated; changes in some administration mechanisms, the list expansion due to environmental fees and strengthened control over the unshadowing of small and medium businesses were offered.
Highlights
Keywords JEL Classification local self-government, decentralization, local budgets, taxes and fees, property tax, single tax Establishment and development of the Institute of local taxes and fees characterizes the economic culture of the territories functioning, which, in the context of democratization of all processes in Ukraine, should be aimed at ensuring the rights and freedoms of citizens in terms of establishing local taxes and fees, considering their immediate interests
Precondition for the development of a democratic state is the creation of an effective system of local self-government, whose activity is related to ensuring the effective performance of functions by the authorities, creating conditions for obtaining quality services by citizens, and improving and developing the system of local taxes
Since 2018, local budgets ac- property tax makes the most significant count for 100% of the uniform tax paid by farm- proportion; it is an incentive for the owners to use ers compared to 86% in previous years
Summary
Establishment and development of the Institute of local taxes and fees characterizes the economic culture of the territories functioning, which, in the context of democratization of all processes in Ukraine, should be aimed at ensuring the rights and freedoms of citizens in terms of establishing local taxes and fees, considering their immediate interests. Local taxation and its problematic aspects and development trends stay relevant in the context of administrative-territorial reform and decentralization in Ukraine. Economic independence of any community is not conceivable without having sufficient financial resources, relative autonomy in managing taxes and other mandatory payments coming to the relevant local budget. Precondition for the development of a democratic state is the creation of an effective system of local self-government, whose activity is related to ensuring the effective performance of functions by the authorities, creating conditions for obtaining quality services by citizens, and improving and developing the system of local taxes
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