Scientific Proceedings of Vanadzor State University Humanitarian and Social Sciences (ISSN 2738-2915)
2023 vol 1
The Role of the Tax System in the Country’s Economy
Key words: principle, function, tax legislation, efficient, competitive, tax revenues, collection
The role of taxes, the tax system and tax policy in the economic development of the country cannot be overestimated. They affect economic growth, development sustainability, structural shifts in the economy, and ultimately, the quality of life and the level of population’s well-being. Important tasks of any state are: establishing an optimal structure of taxation, achieving high efficiency of all tax functions. One of the guarantees for ensuring the economic development of the country is its economic security, which is due to the activities of the public administration system. From this point of view, it is important to constantly improve the tax system, which is an important tool for influencing the economy. One of the main factors hindering the development of the country’s economy is the imperfection of the tax system and the instability of tax legislation. Thus, the effective functioning of the economic system of the state depends on how correctly and elastically the tax system is formed. To characterize the tax system and evaluate its role in stimulating the economy, it essentially needs to be competitive and neutral. It is a competitive and neutral tax system that can create favorable conditions for the development of the economy as a whole, increase production efficiency, and contribute to an increase in the quality of living standards.
At the same time, the presence of a competitive and neutral tax system is a necessary but not sufficient condition for realizing the full potential of collecting tax revenues to the budgets of various levels, which is facilitated by the presence of an effective tax administration.