Regional Tax Revenues As Basis For Territory Financial Independence

Abstract

Regional and local taxes mainly consist of property taxes, whose revenues are insignificant. Thus, they are deliberately not included in federal budget revenues. Revenues from key, budget-generating taxes are subject to transfer to the federal budget. Regional tax policy is a part of the financial policy of the state to provide the constituent entities of the Russian Federation. The economic growth of the region largely depends on a competent regional tax policy, since it affects the economic activity of business entities. Stimulation of the economic activity of economic entities in the region should lead, on the one hand, to an increase in their profits, and, on the other hand, to an increase in tax revenues to the budget. In this regard, the ongoing regional tax policy serves as one of the effective tools for achieving sustainable economic development in the region. The mechanism for calculating and levying regional and local taxes generate their own sources of income for the regional budget. Although the mechanism has a number of shortcomings, it can provide a stable financial base for sustainable development of the region on condition of the correct regional tax policy. The role of tax administration and tax culture is increasing every year not only in the process of tax levying but also for sustainable economic growth in the region. Improving the quality of the tax administration mechanism and increasing tax levying are priority areas for the tax policy development.