Local taxation in the context of financial decentralization in Ukraine

Abstract

In modern conditions, the need to study local taxation as a key instrument of financial decentralization is of particular relevance, which contributes to strengthening the financial autonomy of territorial communities, increasing the efficiency of local budgets and ensuring sustainable development of the regions of Ukraine. The purpose of the study is to form a holistic theoretical and practical approach to local taxation in the context of financial decentralization in Ukraine by clarifying its essence, assessing its effectiveness and substantiating the directions of further development. To achieve the goal, the following methods of scientific research were used: analysis and synthesis − to consider existing approaches to defining the concept of “local taxation” and developing an author's definition in the context of financial decentralization; induction and deduction - to consider the criteria for the effectiveness of local taxation in the context of financial decentralization; statistical analysis − to assess the dynamics of local tax and fee revenues to local budgets of Ukraine in 2013-2023; SWOT analysis – to identify the strengths and weaknesses, opportunities and threats of local taxation in Ukraine in the context of financial decentralization. The methods used provide a comprehensive approach to achieving the research goal and solving the tasks set. The article proposes the author's definition of the concept of “local taxation” in the context of financial decentralization, which takes into account modern challenges and features of the development of territorial communities. Based on the analysis of the dynamics of local tax and fee revenues for 2013-2023, the main trends and problems of their administration were identified. The SWOT analysis allowed us to outline the strengths and weaknesses, opportunities and threats of the local taxation system in Ukraine. Practical recommendations are proposed for increasing the financial autonomy of territorial communities based on improving local taxes and fees. The results of the study contribute to the deepening of scientific knowledge in the field of local taxation and provide a basis for improving its functioning in the context of financial decentralization in Ukraine.