FISCAL EFFECTS OF IMPORT DUTIES AND IMPORT REGULATION

Abstract

Ramin Tsinaridze 
 Batumi Shota Rustaveli State University,
 Georgia
 https://orcid.org/0000-0002-0444-9740
 
 Saba Kakhidze
 Batumi Shota Rustaveli State University,
 Georgia
 https://orcid.org/0000-0002-0693-2859
 
 Levan Tsetskhladze
 Ivane Janakhishvili Tbilisi State University
 Georgia
 https://orcid.org/0000-0001-6354-2091
 
 Aim. The aim of the study is to determine the dependence of the country's economy on imports, the fiscal effect of the budget revenues received from import taxes. Also, to highlight the role of import taxes in the formation of the country's budget, which is quite large, that is good on the one hand, but on the other hand, it is a big problem for the country, because the economic value cannot be created on the ground, through which it will be possible to form the budget and reduce dependence on imports.
 Imported products entering the country significantly harm local production and hinder its development, because due to low tariffs or taxes, imported products are cheaper compared to locally produced products. Consequently, the population consumes the cheapest products.
 Therefore, the liberal customs policy chosen and introduced by Georgia significantly harms the country's economy and leaves local production with less chance of development.
 
 Methodology/approach. The methodological basis of the paper is the fundamental research of economic science. Georgian or foreign language scientific articles, papers and studies are used in the paper. The material used in the research is based on the data of the Revenue Service of the Ministry of Finance of Georgia, the State Treasury of Georgia, the Ministry of Economy and Sustainable Development, and the National Statistics Service. Qualitative and statistical methods are used in the research, this research is mainly based on information collection, comparison, study and analysis.
 
 Originality/scientific innovation. The originality and scientific innovations of the research can be formulated as follows: the fiscal effect of import duties and the factors affecting domestic production of the country and its indicators are defined. Forms of state regulation in terms of foreign economic activity have been developed, its advantages and disadvantages have been analyzed, directions for optimizing the country's customs policy and import regulation have been substantiated. Based on the analysis of the country's customs and tax policy, mechanisms for improving the tax system are proposed, which provide the expansion of the tax base in parallel with the protection of national business.
 
 Practical value / results. The practical implementation of the theoretical conclusions and recommendations formulated in the paper will contribute to the improvement of the theoretical-methodological and practical aspects of the regulation of the country's foreign economic activity and the fiscal effect of import duties, which is a prerequisite for the successful development of local business, the growth of budget revenues and the economic well-being of the country.
 The final result of the research is the perfection of the calculation of import payments and administration in the budget. Elaboration of recommendations on various factors affecting it when crossing the customs border in order to solve the issues of theory and practice of managing customs processes at the state level, to introduce them into the budget system and to determine the main directions of the country's financial, social and economic planning.
 Key words: import taxes, budget revenues, import regulation, fiscal effect, protectionism.