FISCAL EFFECTS OF THE LOCAL TAXATION SYSTEM IN KHERSON REGION UNDER MARTIAL LAW

Abstract

Local taxation is an important instrument of fiscal policy that contributes to the formation of budgetary resources of territorial communities and ensures their financial independence. Russia's full-scale invasion of our country has generated significant negative impacts on various sectors of the national economy, including the local taxation system. Martial law has significantly changed the amount and structure of local tax and fee revenues, especially in the de-occupied territories and in territorial communities close to the contact line, which requires additional measures to ensure the financial stability of local budgets. The purpose of the article is to analyse the fiscal effects of the local taxation system in the Kherson region under martial law and to assess the impact of the war on the formation of own financial resources of territorial communities in the de-occupied territories. The fiscal efficiency of the local taxation system in Ukraine during the period of military operations is investigated. The impact of the war on the accumulation of tax sources of local budget revenues in Kherson region is analysed. The main trends in the formation of the structure and dynamics of tax revenues of local budgets of the Kherson region in 2021-2023 are determined. The structure of the local taxation system in the local budgets of Kherson region is considered. The transformation of fiscal effects of local taxation in the conditions of war is analysed. The factors of negative impact on the amount of single tax mobilisation are identified. The fiscal effects of the property tax are detailed by its components. It is substantiated that the current system of local taxation in the period of post-war reconstruction should be significantly reformatted, since in its current format it is unable to provide sufficient budgetary resources for the development of de-occupied and war-affected territories. It is emphasised that optimisation of local taxes and fees should become a key factor in stimulating the regional economy.