FIRST RESULTS OF FISCAL DECENTRALIZATION OF ENVIRONMENTAL TAXATION

Abstract

Based on the current legal framework of Ukraine an interdependence of tasks to achieve the objectives of regional policy in terms of reforming and strengthening the decentralization of power with an implementation of the objectives of the main purposes of environmentally sustainable development, starting from the local level, is disclosed. It is shown that research methods and administrative procedures, which aimed primarily at strengthening both the financial base of local governments, particularly in the field of environmental protection, and the effectiveness of mechanisms and instruments for environmental policy, are of special significance. Because the environmental taxation is main among economic mechanisms of its implementation, so far the transformation of environmental tax in terms of decentralization of power is raised the largest scientific and practical interest whereas the environmental tax is an instrument of strengthening the financial capacity of the regional administration and local government and simultaneously is the supporting tool of financial provision of environmental protection measures.
Due to analytical and statistical research the changes of structure of distribution of environmental tax in inter-budgetary vertical and horizontal during 2011-2015 the positive impact of the new legislation redistribution of revenues from environmental tax on inter-budgetary vertical is discovered and disclosed in detail. From other side, the negative impact of the new legislation redistribution of revenues from environmental tax on inter-budgetary horizontal to strengthen the effectiveness of environmental taxation as a tool for accumulating financial resources of local governments to implement local environmental objectives in the context of national environmental policy objectives is discovered and disclosed in detail.
It has been proved that the current model of fiscal decentralization of environmental taxation is a model of actual destruction of financial provision of environmental protection measures and because of that it is non-environmental. It has been substantiated that further deployment of this model will act as an important institutional factor of strengthening of the negative socio-economic effects on the environment.
It has been emphasized the need of the relevant professional revision of the current legal framework especially its provisions for targeted use of environmental taxes. Concrete proposals to improve the functioning of the current legal regulations of the State Fund for Environmental Protection and to intensify economic interests of local communities to solve environmental problems are presented and disclosed.