REFORM OF LOKAL TAXATION IN TERMS OF LOCALIZATION OF BUDGET PROCESS

Abstract

Abstract. The transformation processes in Ukraine are accompanied by the implementation of radical admi- nistrative reform, also associated with the provision of financial autonomy for local communities and, consequently, increasing their interest in the effective use of funds mobilized to local budgets. Successful implementation of this task in the future will help increase the level of development of the domestic economy and the welfare of citizens. To implement this, a brand new institute of local taxation should be created. Ineffective development of local finances is explained by insufficiently elaborated theoretical and methodological guidelines which would fully reflect the specifics of the post-crisis period, historical and national features of the country, and constant changes in the national legislative and regulatory framework, which defines the legal basis of the institute of local taxes and fees in Ukraine. The aim of the article is to summarize the list of practical recommendations to improve the effectiveness of the system of local taxation as a part of government fiscal policy.