The tax policy and a properly built tax system play a special role in the market economy, the core of which is financial and credit relations. The state uses this mechanism as the opportunity to effectively influence the economic regulation, thereby blocking undesirable market scenarios, and promoting, on the contrary, useful, from the point of view of the state, sectors of the economy. A well-built taxation system is a guarantee and a necessary condition for the effective life of the country and the uninterrupted functioning of the national economy. The tax policy is implemented through a set of laws, codes, regulations and operates as the direct actions of the authorities in relation to the legal subject. This allows the state planning, controlling and regulating revenues and expenditures of budgets of all levels, as well as other cash flows. The essence and basic principles of tax policy are determined by the socio-economic structure of the state, priorities of domestic and foreign economic policy, the current state of the economy, and a long-term strategy for the development of the society. Moreover, social strata and groups currently in power, the policy pursued by the country’s leading party influence the content of tax policy. Tax policy clearly reflects the goals of the state’s impact on the economy, and depending on the state of the economy, the degree of state intervention, the level of centralization of funds may change.
Currently, the economy as a whole consists of market mechanisms and government instruments. One of them is tax policy.
Tax policy consists of a set of measures taken by the state to form a system of fees and taxes, and serves the basis of the government’s financial policy. It defines the types of taxes, their rates, tax deductions and benefits, objects of taxation and other components.
The state of the economy determines the goals and objectives of tax policy, respectively, various forms of tax policy are used.
- maximum tax policy aimed at increasing the number of taxes by raising tax rates, reducing tax incentives;
- economic development policy related to the reduction of the tax burden applied to entrepreneurs while reducing government spending, primarily on social programs;
- “mixed” policy that combines the features of the two forms listed above characterized by high tax rates that allow for a highly effective social policy (Gorsky et al., 2003).
Tax policy should regulate and cover all aspects of the national economy, both microeconomic and macroeconomic (Smirnov, 2019). Tax policy ensures the efficiency of the economic system of the state. Any effective strategy or tactic of the state to stabilize the economy is a thoughtful policy reflected in sound tax legislation, a fair tax administration system. The efficiency of the tax system is associated with the optimal tax policy, which creates the most optimal, affordable and modern business environment (Yudanov, 2006).
Optimization refers to the solution of two important tasks, namely:
- maximum mobilization of budget revenues;
- consideration of the paying capacity of taxpayers when setting tax rates.
Tax mechanisms that regulate the activities of business entities.
Being the most important mechanism of state influence on the economy, tax policy is a system of planned actions of economic entities.
Tax policy represents an important part of economic integration, which, in turn, affects the manufacturing sector, competition, production and sales. In combination with this, taxes affect the socio-political situation in the country (Sokirka, 2017).
The importance of taxes increased ever more in their historical development. The results were expressed in a continuous increase in the number of taxpayers, the number of types of taxes and an increase in the tax burden (Smirnov, 2009). Tax liability arises when a person fulfills income, becomes the owner of an object of taxation or makes payments that are regulated by the tax law. Taxes play a fundamental role in building business reform and strategy, and as such are essential to the overall business climate.
Taxes are aimed at accumulating the necessary tools for government spending. They change from time to time and from place to place, they are numerous and diverse where all classes of society are strategically involved. The importance of taxes increased ever more in their historical development. The results were expressed in a continuous increase in the number of taxpayers, the number of types of taxes and an increase in the tax burden (Mayburov, 2012).
Tax liability arises when a person fulfills income, becomes the owner of an object of taxation or makes payments that are regulated by the tax law. Taxes play a fundamental role in building business reform and strategy, and as such are essential to the overall business climate.
Tax policy represents an important part of economic integration, which most actively affects the manufacturing sector, competition, production and sales. In combination with this, taxes affect the socio-political situation in the country.
It is important to note that it is impossible to establish effective market relations without a well-functioning tax system.
The study identifies the main problems of tax policy at the micro- and macrolevels.
What role does tax policy play in the state regulation of the public and social life of society? What are the mechanisms of tax policy depending on the state, goals and strategy of economic development? What are the government measures aimed at implementing the main state doctrines in the field of domestic and foreign economic policy? Who is the tax policy aimed at, how do the final results of its implementation affect the life and social structure of society? Forms of tax policy. Macroeconomic and microeconomic aspects. Relationships between entities and tax policy entities.
Purpose of the Study
The purpose of this study is to consider the role of tax policy in the life of the state, the degree and form of influence of the state on the economic activity of the country through the mechanisms of tax policy, determine the meaning and identify its characteristics.
Research methods include analysis and processing of information obtained from various sources (Tax Code of the Russian Federation, books, articles, etc.).
Tax policy is one of the most important instruments of the state influence on the economy, which made it possible to effectively regulate all financial and economic processes of both domestic and foreign economic policies.
The financial and economic climate of the state directly depends on the correct and well-organized tax policy.
The study shows that the concept of tax policy covers a range of aspects that go far beyond the purely financial field. It is an important instrument of the state to influence almost all areas of society’s life, achieve the set goals for the social security of the people, build priorities and a development strategy (Komleva, 2020).
Accordingly, the state’s tax policy and the country’s overall economic development strategy are inextricably linked. Besides, it is necessary to take into account the goals of the state and the history of its development (Valinurov, 2010).
Gorsky, I. V., Malis, N. I., & Medvedeva, O. V. (2003). Russian tax policy: problems and prospects.
Komleva, A. S. (2020). Role of tax policy in government regulation and ways to improve it. Collection of scientific articles based on the materials of the IV International Scientific and Practical Conference Fundamental and applied approaches to scientific problems (pp. 127–130). Ufa.
Mayburov, I. (2012). Tax systems. Development methodology. https://www.livelib.ru/selection/1487319-nalogovaya-politika-i-nalogovaya-sistema
Smirnov, D. A. (2019). Taxes and tax system of the Russian Federation (2nd ed.). https://www.livelib.ru/selection/1487319-nalogovaya-politika-i-nalogovaya-sistema
Smirnov, R. O. (2009). Modeling of state fiscal policy instruments. https://www.livelib.ru/selection/1487319-nalogovaya-politika-i-nalogovaya-sistema
Sokirka, Y. S. (2017). Modern Russia: tax policy at this stage. Eurasian Union of Scholars, 11-2, 44.
Valinurov, T. R. (2010). Essence of the state tax policy and the content of tax mechanism. Annex to the modern science-intensive technologies, 1, 12–16.
Yudanov, A. Yu. (2006). Macroeconomic aspects. Tax avoidance issues. http://www.mirkin.ru/_docs/_dumnaya/dis/disBekker.pdf
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23 December 2022
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Khasanova, S. S., Shemilkhanova, A. A., & Balaeva, K. M. (2022). Tax Policy And Its Features. In D. K. Bataev, S. A. Gapurov, A. D. Osmaev, V. K. Akaev, L. M. Idigova, M. R. Ovhadov, A. R. Salgiriev, & M. M. Betilmerzaeva (Eds.), Knowledge, Man and Civilization- ISCKMC 2022, vol 129. European Proceedings of Social and Behavioural Sciences (pp. 594-597). European Publisher. https://doi.org/10.15405/epsbs.2022.12.76