The article deals with the experience of post-socialist EU countries, in particular, Bul-garia, as to the accomplishment of minimal requirements to the level of excise taxation of cigarettes within the general process of tax harmonization. The authors consider conse-quences of this policy in the context of its impact on the cigarette market, achievement of health goals and provision of the planned level of budget revenues. Analyzed the contradictions harmonization of the excise tax on cigarettes in EU, which take the form of the change of its target reference points, i.e. complementing the indicator of minimum level of the overall excise rate on cigarettes with minimal requirements to the size of excise yield, which is recognized as the most effective mechanism for reducing price differentiation among EU countries.
The authors define features of the excise policy in Ukraine, which is characterized by high rates of increase of the specific excise and a minimum excise duty on cigarettes. There are arguments in favor of the assumption that this trend did not lead to price shock only because the cigarette manufacturers, competing for the market, tried to keep low prices for their products. It is concluded that, in Ukraine, the continuation of the aggressive policy of raising excise rates for cigarettes, especially in a combination with the establishment by the Cabinet of Ministers of Ukraine of minimum wholesale and retail prices for them, sooner or later can lead to a price increase and, on this basis, to the expansion of the shadow cigarette market.
The authors justify the necessity of compliance by the Ukrainian government of such principles of efficient excise policy as gradual increase of excise tax rates, development and implementation of a stage-by-stage plan of harmonization of the tax burden on tobacco products, considering, in the process at setting tax rates on cigarettes, such factors as the risk of smuggling, purchasing power of local consumers, tax rates in neighboring countries, and the ability and effectiveness of the tax authority to enforce compliance with the tax legislation.
The article was prepared within the research project on “Improving the tax system with the decentralization of state power” (No of state registration 0115U000938).

Keywords: tax harmonization, excise tax, ad valorem excise, specific excise, overall minimum excise duty, excise yield

Tax benefits, considering their consequences for the economy and the budget system, are the most controversial element of any tax. Therefore, policy decisions on the introduction of new, continued use or abolition of existing tax benefits should be based on reliable information about their expected or actual effectiveness and efficiency. The purpose of this article is to define methodological approaches to assessing the use of tax benefits as a prerequisite for improving the soundness of tax policy and effectiveness of public administration of the financial system.
The article, based on the analysis of Western literature sources, considers methodological approaches to assessing the use of tax benefits in the context of their effectiveness (achievement of goals and fulfillment of the conditions for granting, impact on the behavior of economic agents and results of their activity), efficiency (comparison of benefits and costs) and relative efficiency (comparison of the effectiveness of tax benefits and other policy instruments), as well as evaluation methods and tools. The practical application of these methodological approaches is considered on the example of investment and innovation incentives for corporate income tax and VAT incentives (reduced tax rate on labor-intensive services).
The author notes that the assessment of consequences of the introduction of tax benefits can be provided using methods of comparative analysis of the behavior of the beneficiary company before and after the introduction of the tax incentive; survey of the company's managers on how the tax benefit affected certain aspects of their behavior (investment decisions, implementation of R&D, employment and remuneration policies, etc.); and econometric analysis.
According to the results of the study, it was is concluded that ultimately the choice of an the approach to assessing the application of tax benefits, as well as methods and tools of analysis is determined by the available information base in open sources and access to non-public information. In addition, the reliability of the results of evaluation of the application of tax benefits substantially depends on compliance with the requirements and procedures during their implementation, in particular, the definition of objectives and, if necessary, the conditions of their granting, as well as the quality and the completeness of accounting of the provided benefits. The latter, as well as the availability of the necessary information and its disclosure is one of the main problems in assessing the application of tax benefits in countries with transition economy.

Keywords:tax benefits; effectiveness, efficiency and relative efficiency of tax benefits; model of the marginal effective tax rate; tax expenditures.

Despite the preparation by the State Tax Service of Ukraine of Reports on tax reliefs that are a loss of budget revenues, which indicate certain steps towards the introduction of the concept of tax expenditures in the budget process, the question of their quality remains open due to the uncertainty of the principles of distribution of tax reliefs into those that are losses of budget revenues and other tax reliefs, and due to the algorithm for calculating budget losses from the provision of tax reliefs. In view of the above, the purpose of the article is to determine methodological approaches to the formation of Directories and, accordingly, Reports of the State Tax Service of Ukraine on tax reliefs (on the example of VAT reliefs), that are losses of budget revenues, and on other tax reliefs and justification of the guidelines for improving the quality of such reports.
Based on the analysis of concepts of benchmark tax system (tax) and tax expenditure and approaches to determining their main elements, the author formulates requirements for the structure of Directories of tax reliefs and Reports on tax reliefs, in particular, it is established that if the Directory of tax reliefs, which are losses of budget revenues should include only tax expenditures, then in the structure of the Directory of other tax incentives two components can be distinguished – "structural incentives", which are elements of the benchmark tax system, and special incentives that do not lead to the loss of budgetary revenues. In order to facilitate the identification and analysis, the main components of "structural VAT reliefs" in Ukraine, as well as types (groups) of reliefs that do not cause budget losses are identified, cases of unjustified classification of tax reliefs in the State Tax Service Directories are considered and proposals to change their classification are substantiated. Based on the calculations, it was identified which groups of reliefs predominate in the system of other reliefs, as well as in the reliefs that are losses of budget revenues.
According to the results of the study, it was concluded that the amount of "structural reliefs" of VAT in Ukraine is 4.5 times higher than the amount of tax expenditures, which, if necessary, can be considered as a reserve for increasing tax revenues to the state budget of Ukraine. The shortcomings of the systematic accounting of VAT reliefs in the Directories of tax reliefs have been identified and proposals aimed at improving the correctness and completeness of their accounting have been developed.

Keywords:benchmark tax system; tax expenditures, "structural reliefs", VAT reliefs, tax reliefs accounting, Directories of tax reliefs

In the context of Russian Federation's full-scale war against Ukraine, the idea of conducting a radical tax reform in our country, which would provide for the establishment of corporate income tax, personal income tax and VAT rates at the same level of 10%, has become widespread, and later transformed into the idea of an "anti-corruption" tax reform. According to the reform’s supporters, lowering the rates of the main taxes will ensure the de-shadowing of the economy, destroy the grounds for corruption, and on this basis will lead to an increase in tax revenues, if not in the first year of the reform, then at least in the short term.
Optimistic forecasts regarding the fiscal consequences of a radical reduction in the rates of main taxes in Ukraine are based on simplified ideas about the impact of the size of tax rates on the scale of the shadow economy and tax revenues. The purpose of the article is to refute these ideas by revealing, using the results of theoretical and empirical studies, the ambiguous nature of the relationship between tax rates and the size of the shadow economy and tax revenues.
A comparative analysis of the rates of VAT, personal income tax, corporative income tax and social security contributions in Ukraine and the EU countries has been carried out, which allows to establish that none of the EU countries has ever introduced low rates for all major taxes and social security contributions, reduced the VAT rate to the level of minimum EU requirements (15%), or refused to finance pension payments through social security contributions, distributing their burden between employers and employees. The author analyzes the impact of tax rates, tax burden and other factors on the level of the shadow economy and establishes why lower tax rates do not guarantee a reduction in the scale of informal activities. The absence of a direct link between the size of tax rates and corruption is substantiated. Based on the analysis of the arithmetic and economic effects of tax rate cuts, the author determines their ambiguous impact on tax revenues. A comparative analysis has been made of the fiscal efficiency of the taxes whose rates are proposed to be reduced and of the compensating taxes, and the impossibility of compensating budget losses by increasing these taxes is substantiated. The author concludes about the high fiscal risks of a radical reduction in the rates of budget-forming taxes in general and the impossibility of such a reduction during the war.

Keywords:tax reform; tax rates; social security contributions; shadow economy; effects of tax rate cuts