• Dmytro Dema
  • Inna Shubenko
  • Serhii Davydchuk


local budgets, local taxes, property tax, land tax, single tax


The paper examines the formation of local taxation system in Ukraine. It has been established that the number of local taxes and fees has been significantly reduced due to the evolution in the local taxation system. Currently the list of local taxes and fees comprises two local taxes, namely the property tax and the single tax, as well as two local fees including the tourist fee and the vehicle parking fee. It is determined that the basis for local budget revenues is formed by the tax receipts which tend to increase, with the simultaneous decrease in proceeds from state administration bodies. The personal income tax is considered to be the one having the strongest effect on the formation of local budget revenues. The analysis results determine that tax revenues from local taxes and fees have a growing tendency, however they are not budget-forming for the local budgets so far. The overall increase tax revenues to local budgets are observed from the property tax and a decrease in its component – transport tax. Local fees are proved to have a negligible effect on the formation of local budget revenues. It was determined that the local authorities have no power to lay local taxes and fees, preventing them to influence the amount of tax revenues to their budgets. The administration of local taxes and fees is negatively affected by the war, since real estate objects are exempt from taxation, and there observed a decline in the entrepreneurial activity.
The insufficient work of local self-government bodies in attracting local taxation opportunities provided by the decentralization reform to strengthen the local budgets financial capacity has been substantiated in the study. It is proposed to strengthen the local self-government bodies’ role in the administration of local taxes and fees, in particular by giving them an opportunity to independently choose the objects of taxation on their territories.