ON TAXABLE CAPACITY OF THE REGION

Abstract

The article discusses the need to assess taxable capacity of the region to form a competent tax policy both at the level of individual regions and the country as a whole. The attention is paid to the approaches to the interpretation of the term “region,” on the basis of which it is concluded that the diversity of opinions is based on the characteristics that are laid in a certain definition. The analysis of statistical data is conducted. It proves the hypothesis that the pumping up the regional budget mostly depends on tax revenue. This, in turn, proves the necessity for the assessment of tax revenues in the budget of the region for proper planning and forecasting of development of the region. The stages of improvement of tax policy in the region are highlighted, one of which is the assessment of economic potential of the region. Having assumed that one of the most important elements of economic potential of the region is a taxa- ble capacity, the necessity of more detailed examination of the issue of its assessment is proved. It is revealed that today the legislation of the Russian Federation on taxes and fees contains no interpretation of the term “tax potential of the region.” In addition, the level of tax capacity is not a required statistic indicator, despite its obvious importance. The research of the essence of tax capacity allows concluding that its evaluation helps to solve a number of important problems, in particular, achieving an optimal balance of fiscal and regulating functions of taxes, establishing an effective expansion of the tax base of regions, etc. The integration of available information on the issue allows concluding about what the process of formation of taxable capability of the region should be, as well as making a hypothesis concerning its quantitative and qualitative assessments.