PROGRESSIVE TAXATION OF PERSONAL INCOME IN UKRAINE

K.V. Mendzhul, Yu.V. Shevchenko
2020 Ûridičnij naukovij elektronnij žurnal  
The article analyzes the legal problems of implementation of progressive taxation of personal income in Ukraine. The relevance of the research is due to the fact that the current taxation system in Ukraine needs to change the form of taxation to that one which will take into account the share of income of the state population and establish taxes at the level of opportunities of the citizens of the country, that is, the implementation of progressive taxation. The purpose of the article is to
more » ... e article is to determine the nature of progressive taxation of personal income and possibility of introducing such form of taxation in Ukraine: the origin of the tax system of Ukraine and the content of the concept of progressive taxation were outlined, foreign experience of progressive taxation of personal income was studied, the main legal problems of such form of taxation were determined. Progressive taxation is a widespread form of taxation around the world. For Ukraine implementation of a progressive tax scale is not novelty, as this form of taxation had been operated in the country by 2004, and over time it was changed to another form, which nowadays is a heavy burden for the population of Ukraine. It has been found out that progressive taxation means higher tax rates for those with higher income and lower rates for those who have lower income. The main purpose of the progressive tax scale is to reduce the social inequality of the citizens. It has been determined that progressive taxation has both positive and negative aspects of its existence in Ukraine. The positive ones are the following: the existence of a correct distribution of tax burden; reducing the pressure on people with low-income; balancing of the domestic tax system with the tax legislation of the European countries. The main negative side is the creation and operation of illegal schemes, tax evasion and loss of initiative to work and earn higher income. It has been mentioned that nowadays there is a bill of Verkhovna Rada of Ukraine aimed at introducing a fair progressive scale of personal income tax. The main goals of the draft law and the possibilities of its implementation have been outlined. As a result of the research, the authors have come to the conclusion that Ukrainian current tax system needs to be changed by implementing progressive taxation to improve the economic level of life of the population.
doi:10.32782/2524-0374/2020-2/65 fatcat:ewo74oe3bzhl7ocplnpgmyyrzm