The Tax Policy of the Republic of Crimea: Reducing Subsidization of the Region

Currently, the Republic of Crimea is a subsidized region, and for objective reasons the level of subsidization will not be significantly reduced in the near future, as a result of which the implementation of the indicators reflected in the Law of the Republic of Crimea "On the Strategy of Socio-economic Development of the Republic of Crimea until 2030" does not seem realistic. At the same time, the tax policy of the republic is developing measures to increase its own budget revenues, and they are already giving their positive results. Undoubtedly, the expansion of the revenue side of the regional budget should be based on increasing the manageability of the tax potential, which is formed taking into account the indicators of the dynamics of economic development. The unique geographical, resource and climatic conditions of the Republic of Crimea allow for a widely diversified economic development policy and, accordingly, regional tax policy. Based on the peculiarities of the territorial location and a large number of health resort and recreational complexes, it is possible to form a program of short-term measures to increase the tax base under special tax regimes, personal income tax and other taxes due to the cascade effect of business activity of individuals and SMEs. Full or partial solution of the problem of seasonality of active use of tourist infrastructure will increase the tax potential and, in turn, reduce subsidized dependence on the federal center. The management of tax potential should certainly be based on the analysis of the level of tax burden due to the fact that excessive tax burden can lead to the effect of reverse increase in tax payments.