MODERN TYPES OF THE TAXATION SYSTEM, THEIR ADVANTAGES AND DISADVANTAGES

Abstract

Taxation has a great influence on the economy of the state, its competitiveness in the world market. Increasing the economic potential of the state requires the study of the taxation system, various types of taxes and the identification of their advantages and disadvantages. Taxes are the most critical means of funding government budgets and regulating the economy. There are various forms and methods of taxation, and types of taxes are one of the most important categories. The purpose of this work is to provide a more detailed examination of specific types of taxes, their advantages, and disadvantages. According to taxation experts, taxation is the mobilization of income for government or local budgets by collecting certain monetary sums or other valuables from individuals and legal entities residing in the state. The collected taxes are used to finance government programs, services, infrastructure, and to provide public services such as healthcare, education, security, infrastructure development, social protection, and other societal needs. There are various forms of taxation, such as corporate income tax, personal income tax, value-added tax, excise tax, property tax, inheritance tax, and others. Each type of tax has its specific features, tax rates, and calculation rules in accordance with the laws of the state. Taxation is a vital factor in supporting financial stability and funding a state's socio-economic needs. Resolving tax matters is an integral part of economic policy and financial management in all countries. Certainly, taxes play a vital role in funding government budgets and regulating the economy. Various forms of taxation, such as corporate income tax, personal income tax, value-added tax, excise taxes, property tax, inheritance tax, and others, come with their own set of advantages and disadvantages. Each of these taxes has its specific features, rates, and calculation rules in accordance with the laws of the state. This is a critical factor in ensuring financial stability and funding a country's socio-economic needs. Resolving taxation matters is an integral part of economic policy and financial management in all countries.