Reducing the Tax Burden in Ukraine: Changing Priorities
Reducing the Tax Burden in Ukraine: Changing Priorities

Summary/Abstract: Purpose: To determine the impact of changes in tax burden in Ukraine on the country’s economicfreedom.Methodology: The study applies qualitative methods for historical analysis, periodization of reforms,and classification of their key priorities and influences. Quantitative methods are applied to compare tax burden (tax-to-GDP ratio) in Ukraine and OECD countries. The overall success and failureof tax reforms was measured by the index of economic freedom, including its component, the index oftax burden (fiscal freedom). The first hypothesis suggested that a reduction in tax burden positivelyimpacted the level of economic freedom in Ukraine; the second hypothesis stated that a reductionin tax burden positively affected the fiscal freedom of Ukraine. Regressions in average tax burdenand the index of economic freedom, including the index of tax burden, were built in R software.Findings: Regression analysis did not confirm the first hypothesis. The second hypothesis was confirmed. Reduced tax burden does not affect the level of economic freedom of Ukraine. This is explainedby the slow progress of institutional reforms in Ukraine. The reduction of tax burden has a significant positive impact on the level of fiscal freedom.Practical Implications: The results obtained have practical relevance for the elaboration of fiscalpolicies in developing countries, in accordance with the country’s economic and political development priorities.Research Limitations/Implications: Future research will include a more in-depth comparativeanalysis of tax reforms in Ukraine, focusing on the key taxes

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