LOCAL TAXATION AS AN INSTRUMENT FOR ENSURING FINANCIAL SELF-SUFFICIENCY OF COMMUNITIES

Abstract

The article is focused on studying the functioning of the local taxation system as one of the key institutions in the structure of local finance, which ensures not only the stability of financial revenues to local budgets, but also plays a crucial role in the formation of financial self-sufficiency of territorial communities. A meaningful comparison of the concepts of ‘financial autonomy’, ‘financial viability’ and ‘financial self-sufficiency’ is carried out. It is substantiated that financial self-sufficiency of a community is not limited to the amount of funds raised, but involves a systemic balance of resources, effective financial management, community resilience to external challenges and the ability to ensure long-term development based on the principles of decentralisation. Monitoring of the fiscal efficiency of local taxes and fees in the period before the full-scale invasion of russia and during the war is carried out. The specificity of the scientific tasks, which are the subject of the research, required the use of a set of special methods, the application of which helped to identify the main trends in the dynamics of mobilisation of tax revenues from local taxation, in particular, property tax and single tax; their share in the structure of revenues of local budgets of Ukraine and GDP, as well as to draw conclusions about the meagre fiscal potential of local fees, which has a marginal impact on the accumulation of budgetary resources of territorial communities and limits their functional capacity. Regional peculiarities of local tax revenues in the context of intensive migration processes, business relocation and changes in the employment structure due to the full-scale invasion of russia are determined. The expediency of further adaptation of local taxation to the principles of the European Charter of Local Self-Government and improvement of tax administration in order to increase the efficiency of fiscal control and reduce administrative costs is argued. It is substantiated that further development of the domestic system of local taxation should be carried out taking into account the principles of fiscal justice, economic efficiency and social expediency, which will help to strengthen the financial foundations of self-government while ensuring financial self-sufficiency of communities.