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

Tetiana Kaneva


State University of Trade and Economics, Department of Finance, Ukraine (Ukraine)
https://orcid.org/0000-0002-3302-9593

Igor Chugunov


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


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


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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Published
2022-07-03

Cited by

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

Authors

Tetiana Kaneva 

State University of Trade and Economics, Department of Finance, Ukraine Ukraine
https://orcid.org/0000-0002-3302-9593

Authors

Igor Chugunov 

State University of Trade and Economics, Department of Finance, Ukraine Ukraine
https://orcid.org/0000-0003-4915-1267

Authors

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

Authors

Andriy Nikitishin 

State University of Trade and Economics, Institute of Trade and Economics, Department of Finance, Vinnytsia, Ukraine Ukraine
https://orcid.org/0000-0002-7951-4017

Authors

Nataliia Husarevych 

State University of Trade and Economics, Department of Finance, Ukraine Ukraine
https://orcid.org/0000-0002-8266-8498

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