№4(15)(2013)

Weaknesses in fiscal area and objectives to reform tax system to improve competitiveness of the Ukrainian economy, mentioned by President of Ukraine, are the main focus of overall economic reform, designed for five years. On ways to improve the tax mechanism under rapidly changing tax laws spoke Doctor of Economics, Professor Valentina Pleskach.

The first step in reforming national tax system was the Tax Code of Ukraine (TCU) №2755-VI adopted 02.12.10, which not only ensured consolidation of all tax laws governing taxation system in the country, but also created the basic conditions for easy business. However, the process of implementation of the TCU in 2011 - 2012 showed the need for further improvement of certain rules and regulations of tax laws and discovered new issues that require immediate solution. Therefore, from December 2010 to March 2013 38 laws were adopted: 29 - Amendments to the Tax Code and nine - due to the need of its coordination with other laws.

Experience of tax policy suggests that taxes can be an instrument to regulate social and economic processes of the national product redistribution, stimulate some processes in economic activity and limit development of others. Tax revenues are the bulk of budget income and at the same time are critical regulators of social and economic processes at the macro and micro levels. The share of tax revenues in budgets of different levels depend on particular set of budget and fiscal policy. Interaction of all budgets and fiscal integrity of country is provided through the tax mechanism.

Let’s analyze the dynamics of state and local budgets in consolidated budget of Ukraine (Table 1, Fig. 1).

Table 1 - Dynamics of revenue and expenditure of budgets at all levels