SIMULATION MODELING OF THE DYNAMICS OF VAT REVENUES GROWTH BY USING THE MECHANISM OF TARGETED ASSISTANCE TO HOUSEHOLDS Cover Image

ІМІТАЦІЙНЕ МОДЕЛЮВАННЯ ДИНАМІКИ ЗРОСТАННЯ НАДХОДЖЕНЬ З ПДВ ПРИ ВИКОРИСТАННІ МЕХАНІЗМУ АДРЕСНОЇ ДОПОМОГИ ДОМОГОСПОДАРСТВАМ
SIMULATION MODELING OF THE DYNAMICS OF VAT REVENUES GROWTH BY USING THE MECHANISM OF TARGETED ASSISTANCE TO HOUSEHOLDS

Author(s): Liudmyla Kozarezenko, Sergiy Londar
Subject(s): Economy
Published by: Інститут трансформації суспільства
Keywords: value-added tax; tax burden; targeted social assistance in tax revenues; simulation modeling

Summary/Abstract: Introduction. Due to the fact that the value-added tax (VAT) in Ukraine has signs of regressive tax, it is largely based at taxation of inelastic goods demand, which makes up a significant portion of the household expenses in the low and middle income countries. Given the high rates of VAT as the tax burden on these households, there is a need to improve the mechanism to VAT in order to reduce the level specified in the tax burden while maintaining fiscal and strengthening enabling functions of VAT. Purpose. To research simulation modeling opportunities of dynamics to growth in revenues from VAT by using the mechanism of targeted assistance to the households for a level of human development increase. Results. The authors suggest that the reservation in the general fund of the State budget funds received from VAT, for the formation of targeted assistance to the poor, may expand the demand for goods and services in socially important sectors of the economy, to stimulate their investment activity, cause a change in volume of production and sales of goods and services, change the tax base and increase revenue. Conclusion. Mechanism of targeted assistance to the households reduces any future tax burden against the backdrop of increasing government revenue and increased household wealth.

  • Issue Year: 2014
  • Issue No: 07-08(1)
  • Page Range: 60-64
  • Page Count: 5
  • Language: Ukrainian