Administration of indirect taxes in the context of forming of state budget revenues

Abstract

Long-term practice of indirect taxes in Ukraine showed that this type of tax is good for public needs.  Indirect taxes  are recognized as the primary and the most stable budget revenue source. Indirect taxation is used as a effective mechanism on social production and as a factor of determination of the level and quality of consumption. But in terms of the interests of businesses indirect taxes divert significant resources from their turnover and are constantly criticized because of excessive fiskal meaning, lack of perfection of  tax base and high interest rates. In this regard, the following questions have become very actual, that is, the further development of the administration of indirect taxes within the fiscal mechanism, analysis of activities of planning and forecasting, collection of indirect taxes and ensuring of their timely state budget revenues. The economic relationships between the state and businesses, that arise in the process of administration of indirect taxes and their revenues to the state budget, have become the subject of the research. The aim of the study is to justify and evaluate the relationship of interdependence between the administration of indirect taxes and the formation of the state budget revenues. The specificity of scientific problems, that make the object of a study, has required the use of special methods complex, the use of which has helped to analyze the administration of indirect taxes in Ukraine and to determine their impact on the revenues of the consolidated budget of Ukraine. In the course of the study it has been determined that the increase in indirect tax revenues to the state budget in the years 2006-2013 has been performed positively affected by such factors as improvement of the business climate, improvement of tax administration, improvement of the efficiency of tax collection, increase of industrial production. The negative impact has been produced by the increase in the share of exports in GDP, reduction of available cash income and, consequently, reduce of consumption. It has been established that the tax system of Ukraine is largely a factor of reducing of economic growth and revenue of the state. The current system of administration of indirect taxes is not able to fully prevent from evasion of payment.