Evaluation of tax benefits effectiveness for certain types of activities in Ukraine

Abstract

One of the stages of effective public administration of the processes of granting and applying tax benefits is to assess its effectiveness and efficiency in order to determine the feasibility of further use of tax benefits or adjustments to the policy of state support of economic agents using tax levers. The purpose of the article is to evaluate the effectiveness and efficiency of the application of tax benefits in Ukraine on the basis of methodological approaches developed by Western scientists, if the necessary information is available. The object of the study is the tax benefits introduced on a temporary basis for certain priority activities identified as requiring government support. The main sources of information for evaluation were the data of the State Tax Service of Ukraine on the amounts of tax benefits that are losses of budget revenues and other tax benefits for 2014-2019, reports of the Accounting Chamber, reports of the State Space Agency of Ukraine, data of the State Statistics Service of Ukraine, Internet resources. The first part of the article presents the results of the assessment of tax benefits for aircraft manufacturers and producers of alternative fuels obtained in 2014-2019. Based on the results of the analysis, it is concluded that although the state support for aircraft manufacturing entities provided in the form of tax incentives contributes to solving current problems, it is insufficient to achieve the targets of development of the capital-intensive industry, which requires a significant amount of financial resources, and therefore must be supplemented by other forms of the state support, the source of which are direct budget expenditures. As for the tax benefits provided to producers of alternative fuels, they are considered ineffective because they did not lead to an increase in biofuel production, so they should be supplemented by benefits aimed at stimulating its consumption: decrease in excise tax rates on biodiesel and its mixtures and motor gasolines containing bioethanol; introducing mandatory market quotas for the content of bioactive components in blended fuels, which is considered a tool for generating guaranteed demand for motor biofuels.