Competitiveness of Ukrainian Tax System as the Basis of the Ecosestate

Abstract

The competitiveness of the national tax system is the main economic security of the state, because it affects the ability of the country to attract investments, support business, ensure the economic security of the state and sustainable rates of economic growth. To improve the competitiveness of the tax system, the state should actively work on improving its key components, which may include both reforming existing tax mechanisms and introducing new approaches and technologies. The purpose of the study is to determine promising approaches to comprehensive assessment of the competitiveness of the tax system of Ukraine in the context of existing endogenous and exogenous challenges and threats. The work presents two approaches to assessing the competitiveness of the tax system. The first is based on a comparative analysis of the structure of the national taxation system of different countries. The second is based on the ITCI (International Tax Competitiveness Index) methodology, which is used for relevant comparative assessments for a sample of OECD countries. Based on the ITCI methodology, it is proposed to use an additional list of indicators to assess the competitiveness of the tax system. An example of such a fragmented assessment for the consumption taxation system for Ukraine and individual EU member states is given. Based on the results of the evaluation, it was determined that Ukraine is only in 8th place with a score of 70. Three countries occupy the lowest place: Greece, Lithuania, and Hungary. This is due to the fact that in Ukraine the level of administrative burden on tax agents is quite high, in particular, the activity of complying with registration requirements and confirming the authenticity of tax invoices requires a large expenditure of time and labor resources. Reserves for increasing competitiveness for the system of indirect taxes of Ukraine are shown. The directions of further scientific investigations, which require a comprehensive assessment of the competitiveness of the domestic taxation system, have been identified.