The tax system as an instrument of economic stimulation in the context of financial instability

Abramova Alla
PhD in Economics, Associate Professor, Lecturer at the Department of Finance and Credit, Yuriy Fedkovych Chernivtsi National University, Chernivtsi, Ukraine, E-mail: a.abramova@chnu.edu.ua, ORCID: https://orcid.org/0000-0003-3364-8316

Received: 06.05.2025    Аpproved: 21.05.2025    Рublished online: 05.07.2025

Cite this article:

Abramova A. (2025) The tax system as an instrument of economic stimulation in the context of financial instability. Ed.: V.V. Kovalenko (ed.-in-ch.) and others [Podatkova systema jak instrument ekonomichnogo stymuljuvannja v umovah finansovoi nestabilnosti; za red.: V.V. Kovalenko (gol. red.)], Scientific Bulletin of the Odesa National Economic University (ISSN 2313-4569), Odesa National Economics University, Odesa, No. 5 (330), pp.23-28.

Abstract

The relevance of the research topic is due to the need to improve the mechanism for stimulating the country's economic development by using the tax system as an effective and efficient anti-crisis instrument of influence, especially in the context of financial instability. The functioning of the country's tax system ensures the fulfillment of its main functional purpose related to the formation of the resource base, implementation of regulatory measures to influence business entities, the level of business activity and the achievement of social goals, determining its public value in the structure of public policy and management. The purpose of the article is to study the basic results of the tax system's impact on economic development of Ukraine, as well as to systematise the main results of tax stimulation of the economy for the period under study in order to identify the following vectors development of the issues under study. The article uses indicator and comparative methods, the method of statistical data analysis, their synthesis, generalisation of performance indicators, and the method of cause-and-effect relationships. The main hypothesis is the ability of the tax system to exert a stimulating influence on the development of economic processes through a system of measures to retain the results of business entities based on the tools of tax rates, benefits, and features of the tax administration mechanism, even in difficult conditions of financial imbalances. The results confirm the following the stated hypothesis and specify a set of factors of objective and subjective influence. Prospects for further research include expanding the analytical component of the stimulating impact of the tax system, improving the existing and introducing new tax instruments, compliance with the conditions and requirements for the functioning of the tax system.

Keywords

tax system, stimulation of economic development, financial instability, taxation level, tax privilege, tax administration, budget, GDP.

JEL classification: E690; G280; H210; H300; O100;DOI: https://doi.org/10.32680/2409-9260-2025-5-330-23-28

UD classification:336.2

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