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Central European Management Journal

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Year 11.2020 
Volume 28 
Issue 3

Reducing the Tax Burden in Ukraine: Changing Priorities

Tetiana Paientko

https:// orcid.org/0000-0002-2962-308X

Valeriy Oparin

11.2020 28 (3) Central European Management Journal

DOI 10.7206/cemj.2658-0845.28


Purpose: To determine the impact of changes in tax burden in Ukraine on the country’s economic freedom.

Methodology: The study applies qualitative methods for historical analysis, periodization of reforms, and classification of their key priorities and influences. Quantitative methods are applied to compare tax burden (tax-to-GDP ratio) in Ukraine and OECD countries. The overall success and failure of tax reforms was measured by the index of economic freedom, including its component, the index of tax burden (fiscal freedom). The first hypothesis suggested that a reduction in tax burden positively impacted the level of economic freedom in Ukraine; the second hypothesis stated that a reduction in tax burden positively affected the fiscal freedom of Ukraine. Regressions in average tax burden and the index of economic freedom, including the index of tax burden, were built in R software.

Findings: Regression analysis did not confirm the first hypothesis. The second hypothesis was confirmed. Reduced tax burden does not affect the level of economic freedom of Ukraine. This is explained by the slow progress of institutional reforms in Ukraine. The reduction of tax burden has a significant positive impact on the level of fiscal freedom.

Practical Implications: The results obtained have practical relevance for the elaboration of fiscal policies in developing countries, in accordance with the country’s economic and political development priorities.

Research Limitations/Implications: Future research will include a more in-depth comparative
analysis of tax reforms in Ukraine, focusing on the key taxes.


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APA style

Tetiana Paientko & Oparin, Valeriy (2020). Reducing the Tax Burden in Ukraine: Changing Priorities. (2020). Reducing the Tax Burden in Ukraine: Changing Priorities. Central European Management Journal, 28(3), 98–126. https://doi.org/10.7206/cemj.2658-0845.28 (Original work published 11.2020AD)

MLA style

Tetiana Paientko and Oparin, Valeriy. “Reducing The Tax Burden In Ukraine: Changing Priorities”. 11.2020AD. Central European Management Journal, vol. 28, no. 3, 2020, pp. 98–126.

Chicago style

Tetiana Paientko and Oparin, Valeriy. “Reducing The Tax Burden In Ukraine: Changing Priorities”. Central European Management Journal, Central European Management Journal, 28, no. 3 (2020): 98–126. doi:10.7206/cemj.2658-0845.28.