Tax expenditures of territories with special economic status of the russian Far East: performance assessment and ways to improve it

O. A. Sinenko

Authors

O. A. Sinenko School of Economics and Management, Far Eastern Federal University

Keywords:

tax expenditures, tax benefits, effectiveness, Far East, Free Port of Vladivostok, Advanced Development Territory

Abstract

The purpose of the paper is to study the effectiveness of tax expenditures of the Far Eastern Federal District (FEFD) within the framework of territories with special economic status (TSES). The analysis showed that the FEFD occupying more than 40% of the territory of the Russian Federation, generates on average only about 4% of the country's tax revenues, which is due to low population density. And tax expenditures depending on these revenues, at the level of the FEFD subjects within the framework of TSES in 2017-2022 were about 1/4 of their total amount. However, the effectiveness of these expenditures cannot be assessed unambiguously. On the one hand, the creation of TSES did not lead to a significant increase in the number of enterprises and people employed in the Far East. However, on the other hand, it is the TSES subjects that have provided 24% of the total amount of capital investment in the district, with about 80% of the declared capital investment falling on large investment projects that can change the situation in the region for the better. To improve the effectiveness of tax expenditures of the state, the paper substantiates the expediency of changing the principle of granting benefits, when they are given to the recipient in the form of a cash grant under the conditions of its counter obligations to increase employment and development of the real sector of the region's economy.

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Author Biography

O. A. Sinenko, School of Economics and Management, Far Eastern Federal University

Candidate of Economic Sciences, Associate Professor, senior researcher

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