Tax Policy for Economic Recovery and Sustainable Development After COVID-19

Tetiana Kaneva; Igor Chugunov; Mykola Pasichnyi; Andriy Nikitishin; Nataliia Husarevych

doi:10.35784/pe.2022.2.11

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Published: Jul 3, 2022

DOI: https://doi.org/10.35784/pe.2022.2.11

Issue Vol. 17 No. 2 (2022)

Articles

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Tax Policy for Economic Recovery and Sustainable Development After COVID-19
Tetiana Kaneva, Igor Chugunov, Mykola Pasichnyi, Andriy Nikitishin, Nataliia Husarevych

102-109
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DOI

https://doi.org/10.35784/pe.2022.2.11

Authors

Tetiana Kaneva

m.pasichnyi@knute.edu.ua

State University of Trade and Economics, Department of Finance, Ukraine, Ukraine

https://orcid.org/0000-0002-3302-9593

Igor Chugunov

m.pasichnyi@knute.edu.ua

State University of Trade and Economics, Department of Finance, Ukraine, Ukraine

https://orcid.org/0000-0003-4915-1267

Mykola Pasichnyi

m.pasichnyi@knute.edu.ua

State University of Trade and Economics, Department of Finance, Ukraine, Ukraine

https://orcid.org/0000-0001-7663-776X

Andriy Nikitishin

m.pasichnyi@knute.edu.ua

State University of Trade and Economics, Institute of Trade and Economics, Department of Finance, Vinnytsia, Ukraine, Ukraine

https://orcid.org/0000-0002-7951-4017

Nataliia Husarevych

m.pasichnyi@knute.edu.ua

State University of Trade and Economics, Department of Finance, Ukraine, Ukraine

https://orcid.org/0000-0002-8266-8498

Abstract

The optimal taxation level and tax structure depend on numerous factors and enormously differ from country to country. However, the two mentioned tax policy instruments could ensure economic recovery and sustainable economic growth. This article aims to examine the effects of tax policy on economic development and evaluate the role of appropriate tax instruments in speeding up recovery. The results showed that tax level harms the GDP per capita growth rate in Central Europe and Baltic states over the 2000-2021 period. Another vital finding is the increase in both overall employment and investment to GDP ratio positively affected the real GDP per capita growth rates. In order to foster economic growth government might use tax cuts and other stimuli both for distortionary and non-distortionary taxes. The tax policy’s institutional potential should be improved to neutralize the adverse effects of COVID-19 impact and enhance macroeconomic sustainability.

JEL Classification: H20, H21, O23

Keywords:

taxes, fiscal stimulus, COVID-19, employment, economic development

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Kaneva, T., Chugunov, I., Pasichnyi, M., Nikitishin, A., & Husarevych, N. (2022). Tax Policy for Economic Recovery and Sustainable Development After COVID-19. Problemy Ekorozwoju Problems of Sustainable Development, 17(2), 102–109. https://doi.org/10.35784/pe.2022.2.11

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