Impact of Tax Burden on the Country’s Investments Cover Image

Impact of Tax Burden on the Country’s Investments
Impact of Tax Burden on the Country’s Investments

Author(s): Ravil Gabdullaevich Akhmadeev, Mikhail Evgenievich Kosov, Olga Alekseevna Bykanova, Ksenia Valerievna Ekimova, Svetlana Viktorovna Frumina, Natalia Vasilievna Philippova
Subject(s): Business Economy / Management, Economic policy, Transformation Period (1990 - 2010), Present Times (2010 - today), Fiscal Politics / Budgeting
Published by: Reprograph
Keywords: investment in fixed assets; tax burden; tax incentives; investment projects; depreciation policy of the company;

Summary/Abstract: The approaches to fiscal expansion and the corresponding methods are the same in most countries of the world. Depending on a specific task, the type of tax incentives may vary from country to country to increase their efficiency. Having analyzed the statistical data on all Russian enterprises (excluding small ones) for the period from 2008 to 2015, we deduced an equation y=0.0221x+0.3824 which describes the dynamics of the share of the enterprises investment in the total number of monetary assets. A positive value of the coefficient 0.0221 suggests that the volume of investments in the total number of monetary assets is increasing steadily. The government increases tax burden to ensure solvency and financial stability of the enterprises engaged in the development and implementation of investment projects. However, it should be noted that such decisions of tax regulation seem inconsistent. We have proved the hypothesis which explains to what extent tax burden on enterprises should be decreased to set the liquidity ratio and profitability at standard values (0.7 – 1), other conditions in the country being equal.

  • Issue Year: XI/2016
  • Issue No: 43
  • Page Range: 994-997
  • Page Count: 4
  • Language: English