PROBLEMS OF FORMATION OF LOCAL BUDGET REVENUES OF UKRAINE BY RENT PAYMENTS FOR THE SPECIAL USE OF NATURAL RESOURCES

Abstract

The article presents the role of rent payments for the special use of natural resources in providing economic territorial development. Analysis of local budget revenues of Ukraine has confirmed that in the conditions of financial decentralization rent payments hold a special place among the state taxes. They are charged for the use of subsoil for mining and for purposes not related to mining, for the special use of forest resources and water. But local authorities do not receive funds from such activities, despite bearing the costs of environmental protection. The study showed that the current system of rent payments in Ukraine doesn’t encourage the rational use of natural resources, doesn’t ensure the real loss of society and doesn’t create a sufficient financial base for local budgets. In order to improve the effectiveness of rent relations, local authorities should direct their actions to the distribution of natural resources between economic entities of all forms of ownership, depending on the maximum economic effect, compliance with the legal norms necessary for the normal course of economic processes associated with rent relations and the prudent use of natural wealth. The assessment of the institute of rent payments in Ukraine shows that there are no payments for monopolization of resources; mismatch of tax rates to world requirements; not reflecting the real value of the natural wealth involved in reproduction; a wide range of tax benefits that have little incentive, regulatory and fiscal impact. It is proposed to add rent payments to the list of local taxes and fees. In accordance with the best global practices, the need to shift the tax burden to taxes related to the use of natural resources has been argued. It has been determined that low rent rates and a wide range of tax benefits do not encourage enterprises to innovate and modernize production. Tax reform should create a basis for taking the institute of rent payments in Ukraine to a new level, which will provide funding for environmental protection and reproduction of natural resources. Keywords : local budget revenues, rent tax system, rent payments for the special use of natural resources