The Impact of Taxes on the Reproduction of Natural Forest Resources in Ukraine
Article Sidebar
Main Article Content
صندلی اداریAbstract
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.
Downloads
Article Details
This work is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License.
1. Proposal of Policy for Free Access Periodics
Authors whom publish in this magazine should agree to the following terms:
a. Authors should keep the copyrights and grant to the magazine the right of the first publication, with the work simultaneously permitted under the Creative Commons Attribution-NonCommercial-ShareAlike 4.0 that allows the sharing of the work with recognition of the authorship of the work and initial publication in this magazine.
b. Authors should have authorization for assuming additional contracts separately, for non-exclusive distribution of the version of the work published in this magazine (e.g.: to publish in an institutional repository or as book chapter), with recognition of authorship and initial publication in this magazine.
c. Authors should have permission and should be stimulated to publish and to distribute its work online (e.g.: in institutional repositories or its personal page) to any point before or during the publishing process, since this can generate productive alterations, as well as increasing the impact and the citation of the published work (See The Effect of Free Access).
Proposal of Policy for Periodic that offer Postponed Free Access
Authors whom publish in this magazine should agree to the following terms:
a. Authors should keep the copyrights and grant to the magazine the right of the first publication, with the work simultaneously permitted under the Creative Commons Attribution-NonCommercial-ShareAlike 4.0 [SPECIFY TIME HERE] after the publication, allowing the sharing of the work with recognition of the authorship of the work and initial publication in this magazine.
b. Authors should have authorization for assuming additional contracts separately, for non-exclusive distribution of the version of the work published in this magazine (e.g.: to publish in institutional repository or as book chapter), with recognition of authorship and initial publication in this magazine.
c. Authors should have permission and should be stimulated to publish and to distribute its work online (e.g.: in institutional repositories or its personal page) to any point before or during the publishing process, since this can generate productive alterations, as well as increasing the impact and the citation of the published work (See The Effect of Free Access).
d. They allow some kind of open dissemination. Authors can disseminate their articles in open access, but with specific conditions imposed by the editor that are related to:
Version of the article that can be deposited in the repository:
Pre-print: before being reviewed by pairs.
Post-print: once reviewed by pairs, which can be:
The version of the author that has been accepted for publication.
The editor's version, that is, the article published in the magazine.
At which point the article can be made accessible in an open manner: before it is published in the magazine, immediately afterwards or if a period of seizure is required, which can range from six months to several years.
Where to leave open: on the author's personal web page, only departmental websites, the repository of the institution, the file of the research funding agency, among others.
References
Baynes, J., Herbohn. J., Smith. C., Fisher, R., & Bray, D. (2015). Key factors influencing community forestry success in developing countries. Global Environmental Change, 35, 226-238.
Bulkan, J., & Palmer, J. (2010). Legitimacy of public domain forest taxation. and combatting corruption in forestry. International Forestry Review, 12(2), 150-164.
Chaudhary, M., Dhar, J., & Misra, O. P. (2017). Analysis of Exploitation of Forestry Biomass by Industrialization: Effect of Harvesting and Taxation. International Journal of Applied and Computational Mathematics, 3(S1), 311–325.
Collins, G., & Faizul, H. (2017). Environmental Policy. Sustainable Development. Governance Mechanisms and Environmental Performance. Business Strategy and the Environment, 27(3), 415-435.
Darusman, D., Muttaqin, M., Nurfatriani, F., Nurrochmat, D., & Yustika, A. (2015). Redesigning Indonesian forest fiscal policy to support forest conservation. Forest Policy and Economics Economics, 61, 39-50.
Garasim, P., Klim, N., & Khomyak, R. (2018). Features of taxation of forestry enterprises. Economics. Entrepreneurship. Management, 5(1), 55-62.
Hajduchova, I., & Viszlai, I. (2015). The effect of taxation on available resources of forest enterprises. 15th International Multidisciplinary Scientific GeoConference SGEM 2015. June 18-24. Book 5, v. 3, 651-658.
Hansen, C., & Lund, J. (2018). Forestry taxation for sustainability: theoretical ideals and empirical realities. Current Opinion in Environmental Sustainability, 32, 23-28.
Harrison, S. R. (1998). New directions in community and farm reforestation. International Journal of Social Economics, 25(2/3/4), 244-260.
Hyde, W. (2019). The experience of China's forest reforms: What they mean for China and what they suggest for the worlds. Forest Policy and Economics, 98, 1-7.
Karpenko, L., Chunytska, I., Oliinyk, N., Poprozman, N., & Bezkorovaina, O. (2020). Consideration of Risk Factors in Corporate Property Portfolio Management. Journal of Risk and Financial Management, 13(12), 299. DOI: 10.3390/jrfm13120299.
Karsenty, A. (2010). Forest taxation regime for tropical forests: lessons from Central Africa. International Forestry Review, 12(2), 121-129.
Khorunzhak, N., Brukhanskyi, R., & Ivanyshyn, V. (2019). Logic-statistical information models in control function of accounting. Independent Journal of Management & Production, 10(7), 846-871. DOI: http://dx.doi.org/10.14807/ijmp.v10i7.906.
Krelove, R., & Melhado. O. (2010). Forestry Taxation in Africa: The Cases of Liberia and Gabon. International Forestry Review, 12(2), 139-149.
Law of Ukraine «On Amendments to the Law of Ukraine «On Peculiarities of State Regulation of the Activities of Entities of Entrepreneurial Activities Related to Timber Sales and Export» (2015). Concerning the Temporary Prohibition of Export of Untreated Timber» dated April 9. 2015. No. 325-VIII (in Ukrainian)
Law of Ukraine «On Amendments to the Tax Code of Ukraine and Certain Legislative Acts of Ukraine on Balancing Budget Revenues in 2016» (24 December 2015). No. 909-VIII. (in Ukrainian)
Law of Ukraine «On amendments to the Tax Code of Ukraine and some other legislative acts of Ukraine on improving the administration and revision of individual tax rates and fees» (23 November 2018). No.2628-VIII (in Ukrainian)
Lund, J. F., Baral, K., Bhandari, N. S., Chhetri, B. B. K., Larsen, H. O., Nielsen. Ø. J., Puri, L., Rutt. R. L., & Treue, T. (2014). Who benefits from taxation of forest products in Nepal’s community forests? Forest Policy and Economics, 38, 119–125.
Mohammed, J., Kofi Osei-Fosu, A., & Yusif, H. (2017). Factors influencing households’ participation in forest management in the Northern region of Ghana. Independent Journal of Management & Production, 8 (4), 1324-1340.
Moroz, V. (2010). Experience of foreign countries in relation to forestry taxation: ecological and economic aspects. Scientific Bulletin of UNFU, 20(5), 86-90 (in Ukrainian)
Onyshchenko, O., Yudenko, Ye., Levytska, I., Rarok, O., Pokotylska, N., & Korbutiak, A. (2020). Logistical Component of Sustainable Development of Regions in the Context of Decentralization Processes: Ukrainian Case. Independent Journal of Management & Production, 11(9), 2250-2274. DOI: http://dx.doi.org/10.14807/ijmp.v11i9.1423.
Radchenko, O., Matveyeva, M., Holovanova, H., Makhyboroda, K., & Haibura, Yu. (2020). Information and Analytical Providion of Budget Support of Institutional Sectors of the Economy (on the Example of the Agricultural Sector of Ukraine). Independent Journal of Management & Production, 11(9), 2355-2378. DOI: http://dx.doi.org/10.14807/ijmp.v11i9.1418.
Radchenko, O., Semenyshena, N., Sadovska, I., Nahirska, K., & Pokotylska, N. (2020). Foresight Development Strategy of the Financial Capacity: Comparative Study of the Ukrainian Agricultural Sector. Engineering Economics, 31(2), 178–187.
Rodrigues, P. C. C., & Semenyshena, N. (2020). Editorial Introduction. Independent Journal of Management & Production, 11(8), 801-806. DOI: http://dx.doi.org/10.14807/ijmp.v11i8.1164.
Sava, A., Dudziak, O., Krasnorutskyy, O., Moskvichova, O., & Rarok, L. (2020). Sustainable Development of Rural Areas: Strategy and Conceptual Framework (Ukrainian Case). Independent Journal of Management & Production, 11(9), 2325-2340. DOI: http://dx.doi.org/10.14807/ijmp.v11i9.1433
Semenyshena, N., Sysiuk, S., Shevchuk, K., Petruk, I., & Benko, I. (2020). Institutionalism in Accounting: a Requirement of the Times or a Mechanism of Social Pressure? Independent Journal of Management & Production, 11(9), 2516-2541. DOI: http://dx.doi.org/10.14807/ijmp.v11i9.1440.
Tereshchenko, A. A. (2003). discriminant model for the integral assessment of the financial condition of the enterprise. Economy of Ukraine, 8, 38-45 (in Ukrainian).