Priority Socio-Economic Development Areas: Their Effectiveness and Role in the Formation of an Optimal Tax Burden

Abstract

The relevance of the research is due to the fact that priority socio-economic development areas (PSEDA) can be viewed as «growth points» for regional economies and are positioned as areas enjoying preferential taxation treatment. In this regard, it is extremely important to assess the optimality of the current tax burden level in a PSEDA with respect to resident enterprises. The purpose of research was a comprehensive study of a PSEDA located in the Amur Region by evaluating the effectiveness of the PSEDA operation; construction of an econometric model for assessing the impact of the tax burden on GRP growth due to the PSEDA establishment; comparison of the optimal and actual tax burden levels in the PSEDA. Based on the research findings, it has been concluded that by establishing an optimal tax burden in a PSEDA through granting special personal income tax benefits, it is possible to create a favorable tax climate in the entire region containing priority development areas. This will contribute to the accelerated economic development of a Russian region and fast relaxation of budget revenues lost in connection with granted incentives.