UKRAINE-EU: TAX TRENDS IN CRISIS CONDITIONS

Abstract

The article is devoted to topical issues of formation and implementation of tax policy in crisis conditions by the EU countries and Ukraine. There are considered the tools of tax regulation used by the EU countries during the crisis economic conditions due to the Covid19 pandemic, as well as in the post-Covid period. Special attention was focused on the experience of three EU member countries: Germany, France and Italy, which are part of the Big Seven and are recognized economically developed states of the world with effective public administration. The tax decisions of the governments of these countries during 2020-2024 were analyzed in detail, the purpose of the introduced changes was determined, which is largely related to the socio-economic support of their citizens and households. From a tax point of view, it can be characterized either by a narrowing of the tax base or by a neutral effect on the tax burden. In the first year of the Covid19 pandemic spread, the tax policy of the EU countries was aimed at reducing the administrative pressure on taxpayers by distancing tax relations with the controlling authorities, postponing the payment of tax payments and reporting, providing tax holidays, compensations and tax discounts to citizens. It was found that starting from 2022, against the backdrop of rising inflation, all countries focused on the gradual normalization of public finances, the return of the budget deficit to an acceptable 3% of GDP, the creation of incentives for the investment activity of economic entities and others. The article also evaluates the structure of tax revenues in Ukraine and EU countries, including France, Germany and Italy, which indicates the equality of direct, indirect taxation and payments for social security, while in Ukraine there is a disproportion of their burden. It was determined that the place of tax revenues in the GDP of Ukraine is insignificant in recent years, compared to the economies of European countries. The tax policy trends of the EU countries for the next five years are described, which Ukraine should take into account when building a strategic policy for post-war recovery and full membership in the EU.