Tax reforms and state budget revenues under the COVID-19 pandemic

Аннотация

The taxes are the economic basis of any country, which are the key-elements at building the country's budget.  The formation of public administration and fiscal policy is highly depended on the ability of the country's government to correctly calculate and use the system of expenditures and taxes in the force majeure situations. The main thing is not to find out what is the difference between a separate tax and a contribution to any fund, but the most importantly, to determine their economic efficiency in both revenue and expenditure.

In the pandemic times, caused by coronavirus, it became vital to talk about the role of the states in the economy - primarily in the health sector, but in addition to this, there occurred an increased demand for the support to business by the states.

National and foreign experience shows that all tax systems are inadequate and can be improved. A generally imperfect but stable tax system is better than no actual system and / or frequent changes. However, due to the mass distribution of "COVID-19", the preferential reforms implemented at this stage turned out to be necessary for business and society.

To address the most pressing problems posed by the pandemic impact on the country's economy and business, the country's government has periodically implemented legislative changes to significantly and substantially alleviate the tax burden of taxpayers.

All this had a negative impact on the revenue side of the budget, so the state had to raise funds from additional, alternative sources to compensate for the reduced tax revenues as a result of the reforms.