The Impact of Taxes on the Reproduction of Natural Forest Resources in Ukraine

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Iryna Zhurakovska
Roman Sydorenko
Pavlina Fuhelo
Liudmyla Khomenko
Nataliya Sokrovolska
صندلی اداری


The research was directed to confirming or disproving the hypothesis that increasing tax pressure on the forest industry encourages the irrational use of forest resources to cover tax payments. The purpose of the study is to develop a methodology for identifying the impact of taxes on the activities of forest enterprises in Ukraine, social and natural capital.  In this study, we try to identify the causes of the increased tax burden and the impact of this process on forest conservation. The following decisions of the Government of Ukraine have been taken into account: ban on export of timber products in 2015; an increase in the rent for the use of forest resources in 2016; expiration of special VAT regime from January 1, 2017, introduction of land tax on forest lands from January 1, 2019, increase of deductions from net profit to the state budget from 75 to 90%. Information bases of research are the survey has been conducted, the statistic reporting, reporting to the State Forest Resources Agency and financial reporting of forestry enterprises. By means of methods of the econometric analysis, it is studied indicators relations of the amount of the paid taxes and the area of logging, the amount of the paid taxes and the area of restoration of the wood from 2010 to 2019. The impact of tax increases on the financial condition of forest enterprises was analyzed. The social effect was analyzed by studying the dynamics of payment of wage taxes, the environmental effect was analyzed by indicators of growth of areas of forest restoration including areas of planting a new forest. By results of the analysis of data of the State committee of statistics and the reporting of 17 state enterprises of the Volyn region which serve 7% of the total area of the woods of Ukraine it is established: tax revenues from forest enterprises have tripled, what is not related to the increase in profitability of their activities; reduction of the number of dividends paid in favor of the state; the total sectorial profitability of the activity decreased more than 6 times; bankruptcy is on the rise, and at the end of 2019 accounts for nearly half (65%) of all operating entities. The constructed econometric model allows us to claim with probability p = 0.95 that the increase in tax payments leads to an increase in the volume of harvesting although taxes should stimulate the economical use of forest resources. The results show that all government decisions as to increasing fiscal pressure on forestry enterprises were unsystematic and lead the industry into bankruptcy. This has a detrimental effect on the ecology of the region as forestry grows. However, instead of developing the industry, these studies indicate a complete decline as enterprises lack the resources to forestry development.


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Integration System of Education, Science and Production
Author Biographies

Iryna Zhurakovska, Lutsk National Technical University

Ph. D. in Economics, Associate Professor, Associate Professor of Department of Accounting and Audit, Lutsk National Technical University. He teaches disciplines taught: International financial reporting standards, audit, tax reporting, accounting and taxation software. Scientific interests: accounting and taxation of intellectual and natural capital. Author of more than 130 scientific works. 

Roman Sydorenko, Lutsk National Technical University

Ph. D. in Economics, Associate Professor of Department of Accounting and Auditю

He teaches disciplines taught: Regulatory support of accounting and taxation, Simplified taxation system, Accounting in banks, Social audit and inspection.

Scientific interests: Small business taxation, Forestry taxation, Tax administration, Social audit.

ScopusID 56677730600

Pavlina Fuhelo, State Agrarian and Engineering University in Podilya

Ph.D. (Economics), Associate Professor, Department of Finance, Banking and Electronic Payment Systems. She teaches disciplines taught ″Financial controlling″, ″State financial control″, ″Budget management″. Scientific interests: state regulation of financial and economic activity; audit in the system of public financial control. 

Liudmyla Khomenko, Kremenchuk National Mykhaylo Ostrogradskiy University

Ph.D. in Economics, Associate Professor, Department of Accounting and Finance. She teaches disciplines taught: Enterprise finance, Financial analysis, Tax management, Enterprise financial strategy, Corporate finance. Scientific interests: Tax management, Business Analysis, Problems, and detailed management of the form and the victories of financial resources. 

Nataliya Sokrovolska, Yuriy Fedkovych Chernivtsi National University

Ph.D. Economics, Associate Professor, Department of Public, Corporate Finance and Financial Intermediation.

She teaches disciplines taught: Budget Management, Public Finance, Treasury Budget Execution System, Financial Policy, Territorial Communities Finance, Budget System of Ukraine. Scientific interests: Innovative development of the economy: global trends and national features.Author of more than 120 scientific works.


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