THE FISCAL SIGNIFICANCE OF PERSONAL INCOME TAX ON THE FORMATION OF BUDGET INCOME OF UKRAINE

Abstract

The purpose of the article is to outline the role of the personal income tax in forming the revenue part of the state and local budgets. The characteristic of taxation of population income as the main component of tax revenues of the budget is determined. The influence and fiscal significance of the personal income tax in the structure of tax revenues of the budgets of Ukraine is substantiated. Analyzing the dynamics of personal income tax receipts for 2018-2022, and determining the impact of personal income tax, the method of comparison, synthesis, analysis, tabular and graphical presentation of research results was used. The fiscal significance of the personal income tax as the main budget-forming tax is very important - as it affects the interests of all strata of the economically active population of the country, contributes to the maximum implementation of the principles of fair and equal distribution of the tax burden, allows to change the size of the final income of the population without affecting the ratio between work and wages, affects the structure of population needs, depending on final incomes, allows taxation of own incomes received from various sources. Changes to the Tax Code and the loss of economic potential in some territories due to the closure or complete destruction of enterprises, the reduction of working personnel led to a decrease in tax revenues. Crediting of personal income tax to budgets in recent years is distributed in the following proportion: to the state budget – 21%; to regional budgets – 15%; to the budgets of territorial communities - 64%. It is worth noting the importance and fiscal significance of the personal income tax - we are observing an increase in the amount of the tax and its share in the consolidated budget, namely, during 2018-2021, the amount of income from this tax increased from UAH 229.9 billion. up to UAH 349.7 billion. We propose to introduce changes to the Budget Code of Ukraine and transfer the personal income tax from the national tax to the local tax with 100% of its inclusion in the budgets of territorial communities. The proposed results of the study will help territorial communities to generate their own incomes at the expense of income tax revenues of individuals and to perform the functions assigned to them.