Financial Journal Vol.15 No.3 2023
S.D. Shatalov, M.R. Pinskaya, V.A. Prokaev, K.N. Tsagan-Mandzshieva
The Rent Taxation Concept for Solid Minerals Extraction and Recovery, p. 9-24
The article considers the conceptual approaches to the taxation of natural resource use. The purpose of the article is to identify the governmental tax risks in the implementation of various scenarios of mining rent withdrawal and to substantiate the methodology of resource taxation in extraction and processing of solid minerals, based on the principle of tax justice. The authors reveal the factors of tax risks for the state in exercising its sovereign right to the mining rent. The article formulates the requirements to the tax system, the observance of which will allow to consider the factors of the state tax risks. Advantages and disadvantages of certain fiscal payments for extraction of mineral raw materials are determined. It is shown that the resource tax should be based on the present value, calculated as the net present value of the investor for the entire lifetime of the project. The authors propose a mining rent taxation mechanism, which would increase budget revenues while maintaining the incentives for mining companies to invest in exploration. The main forks in the design of such a rent income tax are shown.
Keywords: mining rent, mineral extraction tax, additional income tax, multicomponent complex ore, solid minerals
JEL: D60, E20, L10, Q38
For citation: Shatalov S.D, Pinskaya M.R., Prokaev V.A., Tsagan-Mandzshieva K.N. (2023). The Rent Taxation Concept for Solid Minerals Extraction and Recovery. Financial Journal, 15 (3), 9–24 (In Russ.). https://doi.org/10.31107/2075-1990-2023-3-9-24.
© Shatalov S.D, Pinskaya M.R., Prokaev V.A., Tsagan-Mandzshieva K.N., 2023
Fiscal Role of Special Duties on Imported Goods, p. 25-40
The article considers the measures of customs regulation of foreign trade activities used in the world practice. Due to the liberalization of world trade, most countries reduce the use of customs tariff regulation measures, compensating them with the introduction of special duties on imported goods. The purpose of the study is to analyze the international practice of applying those special duties. Analysis of the application of special duties to and against the EAEU countries was carried out, and the implementation of the fiscal function of special duties was examined in particular. The hypothesis of the study is the assumption that special duties play an insignificant fiscal role in the state budget revenues. Analysis of the practice of applying special duties was conducted on the basis of data from the World Trade Organization and the Treasury bodies of the Russian Federation. In the course of the study, the economic and logical methods of comparison, detailing, as well as the balance method were actively used. It was found that anti-dumping duties, which account for 2/3 of all special duties, are most often used to regulate the import of foreign goods. Russia applies 25 protective measures to goods imported from other countries, and 93 protective measures are applied to Russian goods. Special duties are currently insignificant in revenues of the federal budget of Russia; in 2021 their ratio with the receipt of import customs duties amounted to 1.5%. At the same time, there is a steady growth in the receipt of special duties: over the past 10 years, it has increased 13-fold. To increase the fiscal role of special duties, it is advisable to change the order of their distribution among the EAEU countries, so that the entire amount of special duties on imported goods is credited to the budget of the country that initiated their introduction.
Keywords: non-tariff regulation of foreign trade, special duties, budget revenues, anti-dumping measures, countervailing measures, import customs duties
JEL: F13, H87
For citation: Fedotov D.Yu. (2023). Fiscal Role of Special Duties on Imported Goods. Financial Journal, 15 (3), 25–40 (In Russ.).
© Fedotov D.Yu., 2023
Assessing the Complementarity of Preferential Tax Regimes in the Sakhalin Region, p. 41-58
State regulation of the anthropogenic impact on nature, including the policy of limiting greenhouse gas emissions, makes it necessary to support those enterprises that are willing to invest in climate projects. The relevance of incentives in this field is confirmed by the task set by the Arctic Council chaired by Russia at the Research and Training Conference on Climate Change and Permafrost Thawing 2023, namely to find reasonable, practical solutions for adapting the global economy to such changes. In the area of taxation, there is a solution prepared by the Russian Ministry of Economic Development willing to provide a package of tax benefits for investors. According to the draft, they should be exempted from paying VAT and income tax. At the same time, the variety of previously introduced preferential ‘investment’ tax regimes calls into question the rationality of new tax incentives due to the assumption of their redundancy. The fact is that they have similarities in the basic idea of support aimed at the growth of regional investment activity. For this reason, the purpose of the article is to answer the following questions: Is it really worthwhile to expand the number of tax regimes once again? Is it possible to use existing incentives instead of introducing new ones? To achieve the purpose, we rely on the results of comprehensive, comparative analysis of the developed incentives and the current tax preferential regimes on the example of the Sakhalin region. It stands out among other regions of Russia by its carbon-neutral pilot project and the greater number of preferences already enjoyed by investors, so we can provide representative and practically significant results. The hypothesis of the study is based on the concept of complementarity, meaning that the newly developed tax incentives will contribute to the complexity of the Russian tax system but will not cross the scope of the other mentioned tax regimes. The results show that climate projects have their own specifics in terms of objectives as well as areas of investment that require special approaches in tax policy, since investors create a useful economic effect in the form of reducing greenhouse gas emissions rather than producing goods, and no taxable profit is generated until the investor profitably sells carbon units in the market.
Keywords: climate policy, experiment, greenhouse gas emissions, tax incentive, tax policy, tax regime, Sakhalin region
JEL: E62, Q54, R11
For citation: Gromov V.V. (2023). Assessing the Complementarity of Preferential Tax Regimes in the Sakhalin Region. Financial Journal, 15 (3), 41–58 (In Russ.). https://doi.org/10.31107/2075-1990-2023-3-41-58.
© Gromov V.V., 2023
Impact of the Level and Structure of the Tax Burden on Citizens Inequality, p. 59-77
The purpose of this study is to determine the impact of the structure and level of the tax burden on inequality of citizens, using the example of the countries of the Organization for Economic Cooperation and Development (OECD). The hypothesis was that the structure and level of the tax burden affect citizens inequality. This hypothesis was tested using a correlation and regression analysis of the dependence of citizens inequality level on the tax burden structure by decomposing it into separate taxes. The Gini coefficient and the share of income of the tenth decile group were chosen as indicators of inequality. The calculations were carried out using the Data Analysis in MS Excel for the years 2000 and 2020 on the basis of statistical data from the World Bank and OECD. The data set formed for the study contains about 1 thousand indicators. The share of all taxes in GDP has the closest relationship with inequality: it explains the dynamics of the level of inequality by 53–74%. The severity of the tax burden has a more significant impact on inequality than its structure. The decrease or increase in the share of a tax in the structure of the tax burden characterizes the weakening or strengthening of the impact of this tax on inequality. The change in the structure of the tax burden in OECD countries in 2020 compared to 2000 contributed to the smoothing of citizens inequality by increasing the share of income tax while reducing the share of indirect taxes. The relationship between the indicators of tax burden and inequality is non-linear. It fits into the concept of A. Laffer. Establishing the type of this dependence will make it possible to solve the problem of optimizing the structure of tax burden in order to smooth inequality.
Keywords: inequality of citizens, income tax, indirect taxes, Gini coefficient, income of the tenth decile group, OECD countries
JEL: H21, H24
Funding: The Research was prepared supported by the grant of the Russian Science Foundation No. 23-28-00365, https://rscf.ru/en/project/23-28-00365/.
For citation: Pugachev A.A. (2023). Impact of the Level and Structure of the Tax Burden on Citizens Inequality. Financial Journal, 15 (3), 59–77 (In Russ.).
© Pugachev A.A., 2023
On the Possibilities of Tax Decentralization in Russia, p. 78-90
During the structural transformation of the Russian economy, it is especially important to ensure the balance of consolidated regional budgets, in particular through tax decentralization. The article presents the results of modeling the redistribution of tax revenues between the federal and regional levels of the budget system. The purpose of modeling was to find such parameters of tax decentralization which do not worsen the horizontal balance of consolidated regional budgets. The scientific novelty of the paper lies in modeling the effects of tax decentralization on the level of differentiation of regional tax revenues according to the latest available tax and budget reporting data for 2019–2022. As a result, it was shown that an increase in regional shares for personal income tax, certain components of the mineral extraction tax, water tax and fees for the use of water biological resources up to 100% will not lead to a significant increase in inter-regional differentiation of tax revenues. The prospects of the study are to take into account the impact of the structural transformation of the economy on the territorial distribution of tax bases and the level of taxation, as well as to detail the calculations for personal income tax and mineral extraction tax as new data are accumulated.
Keywords: redistribution of tax revenues, tax decentralization, fiscal federalism, regional budgets, balance of budgets
JEL: H71, H73, H77
Funding: the article was written on the basis of the RANEPA state assignment research program.
For citation: Arlashkin I.Yu. (2023). On the Possibilities of Tax Decentralization in Russia. Financial Journal, 15 (3), 78–90 (In Russ.).
© Arlashkin I.Yu., 2023
International Practice of Tax Expense Identification, p. 91-103
While it is generally accepted in foreign jurisdictions to treat tax expenditures as foregone budget revenues, due to the application of certain provisions of the tax code, significant cross-country differences emerge in determining which of these can be recognized as deviations and which as the norm. There is no consensus on which approaches can be recognized as best practice. The topic of methods for determining tax expenditures remains relevant. The purpose of the study is to identify the principles and criteria of tax expense accounting. Theoretical basis of the study consists of legal acts and approaches to definition of normative tax structure. The research is conducted with the use of empirical methods, including synthesis and comparative analysis of cases. As a result of the study a classification of tax preferences was developed and two methods of tax expense identification, normative and conditional, were proposed. A certain correlation between the concepts of tax expenses and methods of their identification was revealed. The international practice of attributing preferences to tax expenses was reviewed, which helps to understand the differences in the identification methods suggested by the author. The conclusion on advantages and limitations of the use of the two methods of tax expense accounting is made.
Keywords: tax expenditure, tax preferences, normative and conditional methods of identification
JEL: H24, H87
Funding: the article was prepared as part of the research work in RANEPA.
For citation: Tischenko T.V. (2023). International Practice of Tax Expense Identification. Financial Journal, 15 (3), 91–103 (In Russ.).
© Tischenko T.V., 2023
M.Yu. Malkina, R.V. Balakin
The Relation of Financial and Industrial Stresses to Monetary Policy Parameters in the Russian Economy, p. 104-121
The paper examines the relationship between financial and industrial stresses in the Russian economy in 2006–2019, mediated by the monetary policy of the state. Stress indices are constructed on the basi of a number of financial market and industrial sector indicators of the Russian economy. These variables are aggregated using the principal component analysis. Stress indices are calculated as the moving difference between the standard deviation and the mean value of the first principal component. The graphical and correlation analysis confirms that industrial stress in the Russian economy grows during financial crises, accompanied by an increase in credit interest rates (including the key rate) and the scale of refinancing of credit institutions by the Bank of Russia. Based on the construction of ARDL models, we obtained convincing evidence of the positive impact of both a short-term increase in the key interest rate and a longer increase in the scale of refinancing of credit institutions by the Bank of Russia on the reduction of financial and industrial stresses in the Russian economy, which, however, appears in different time intervals. We concluded that the combined management of industrial and financial stresses, taking into account their interaction and sensitivity to different instruments, requires the search for the optimal combination of monetary regulation methods. The results obtained may be useful in conducting a prudent monetary policy in periods of financial instability.
Keywords: Russian economy, financial stress index, industrial stress index, monetary policy, key rate, refinancing of credit institutions by the Bank of Russia
JEL: G01, C58, E44
Funding: The study was supported by the Russian Science Foundation grant No. 23-28-00453, https://rscf.ru/project/23-28-00453/
For citation: Malkina M.Yu., Balakin R.V. (2023). The Relation of Financial and Industrial Stresses to Monetary Policy Parameters in the Russian Economy. Financial Journal, 15 (3), 104–121 (In Russ.). https://doi.org/10.31107/2075-1990-2023-3-104-121.
© Malkina M.Yu., Balakin R.V., 2023
Public Finance System: Management Reform, Directions of Improvement in the Republic of Uzbekistan, p. 122-142
The article is devoted to the reform of public finance management in the Republic of Uzbekistan. Its informative basis consisted of laws, by-laws and a large body of empirical information material on the country’s public finance system from 1991 to the present, as well as on its development in accordance with the directions and measures defined by two strategies for reforming public finance management of the Republic of Uzbekistan (2007, 2020). The article shows its relevance, purpose and objectives, describes stages of reforming and development of the public finance system of Uzbekistan, as well as achieved results, problems and directions of its further improvement.
Keywords: public finance, public finance management reform, fiscal transparency, financial control, initiative budgeting, mahalla, mahalla budget, medium-term planning, strategic planning
JEL: E6, H6, H7
For citation: Srojiddinova Z.Kh. (2023). Public Finance System: Management Reform, Directions of Improvement in the Republic of Uzbekistan. Financial Journal, 15 (3), 122–142 (In Russ.). https://doi.org/10.31107/2075-1990-2023-3-122-142.
© Srojiddinova Z.Kh., 2023