UDC 336.1(4)
Karlin, M. I. (2014). Kryteriyi ta napryamy udoskonalennya rozpodilu podatkovykh dokhodiv mizh rehionamy krayiny [Criteria and ways of improvement of tax revenues distribution between the regions of the country]. Rehional'na ekonomika - Regional Economy, 72(2), 116-123. [in Ukrainian].
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The experience of some European Union countries of reducing differentiation in income between regions, mechanisms of redistribution of value added tax and other tax revenues between them is analyzed in the paper. The changes to the mechanism of redistribution of main budget-forming taxes between the Ukrainian regions are proposed on the basis of study of this experience. The aim of this redistribution is giving for the regions basic budget resources of the state and reducing the role of the center in their redistribution.

First of all it concerns the Value Added Tax (VAT), which is proposed to distribute between the center and the regions taking into consideration the number of population of each region of Ukraine. At the same time, leaving most of the VAT in the region, it is proposed to implement the VAT refund from local budgets.

The excess VAT revenue it is advisable to divide between the region and the center at a ratio of 50% to 50% to encourage the authority of the regions to its growth. At the same time to Corporate Income Tax (CIT) is advisable to apply another principle of redistribution to stimulate the regions of Ukraine to reduce its subsidiarity. Based on the suggestions of Mayors of the largest cities of Ukraine, it is should be left about 50% of the CIT on the places, but only if 50% of all their subsidies, subventions and grants also will be finance from their budgets.

It is advisable to completely leave the excess revenues from CIT in the region to encourage their leadership to create new industries and jobs in the regions, including the innovative direction.

In general, a new mechanism of redistribution of VAT and CIT should help to leave at least 60–70 % of tax payments in the region, but not 30 % as in 2013. Only the expansion of the financial ability of the regions, in this manner, can help to stop the centrifugal tendencies in Ukraine.

Without a doubt, proposed mechanism of VAT and CIT distribution will significantly rise the resources of local budgets, but it is the only way to interest the government of the regions to work more efficiently. In addition, the regions will be more effective to use the funds for grants, subventions and subsidies, as 50 % of them will be financed from the regional budget, which is better controlled by community.

It would be advisable to establish in Ukraine 6-9 of tax counties to reduce the “shadowing” in the process of VAT refunds and transformation of the State Tax Service into the independent, from the authorities of the region, structure. The similar already been done in Germany.

It would be advisable to conduct a tax amnesty to increase tax revenues that could be used to improve interbudgetary relations; but the cost from it, must be attributed to the local budgets, but not to the State Budget of Ukraine.

Today it is important give the basic financial resources on the level of regions, to stop centrifugal tendencies in our country, not on the level of local communities, as it is proposed by the new government of Ukraine, which was formed in early 2014.

Keywords:

interbudgetary relations, region, taxes, value added tax, corporate income tax, excise tax, tax amnesty