OPTIMIZATION OF THE UKRAINIAN TAX SYSTEM IN THE CONDITIONS OF WAR AND POST-WAR RECONSTRUCTION

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Dmytro POKOVBA
Yevhenii KYRYLIUK
Alina PROSHCHALYKINA

Abstract

Introduction. The tax system is the basis of the successful development of any country, its main financial resource. On the way to achieving the greatest positive effect from its functioning in Ukraine, the process of its evolution and improvement is continuously taking place. However, today the tax system faces serious challenges and threats. This is primarily due to the introduction of martial law and the consequences of the war, which is still ongoing. Therefore, carrying out the modification of the tax system of Ukraine, aimed at increasing the degree of efficiency of the economy, reducing the level of its shadowing and increasing the real income of the population, acquires a fundamentally new necessity and relevance.


Purpose. The study focuses on identifying the peculiarities of the transformation of Ukraine's tax system under martial law.


The results. The study defines the role of the tax system for the efficient functioning of the economy. Changes introduced in the domestic tax system during the first months of the war are systematized. The reaction of business entities to the adopted innovations was studied. The critical need to modify the tax system of Ukraine has been established. Recommendations on directions for reforming the domestic tax system have been formulated.


Originality. Within the framework of the study, for the first time, changes to the taxation system after the beginning of the war were thoroughly analyzed, the procedure for canceling the innovations adopted in the first months of the war was established, and the prospects for further reforming the country's economy on the way to ensuring its viability and the post-war period were outlined.


Conclusions. The tax system of Ukraine quickly adapted to functioning in the conditions of a full-scale war. Thus, in the first weeks, a number of relaxations were introduced to ensure the viability of the economy and maximize support for domestic business. Initially, all innovations were introduced for the period before the end of martial law, but in 2023, the process of canceling the innovations began. Today, the tax system is on the verge of a large-scale transformation, because in its current form it cannot ensure the effective performance of the tasks set before it. Most of the innovators are inclined to the need to introduce the same rate for the 3 main taxes, but some of them consider it necessary to return to progressive taxation. At present, the discussions continue, it is only obvious that the tax system that we will get as a result must fulfill the most important task - to ensure the operation of the economy in the extremely difficult conditions of post-war recovery.

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References

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