METHODOLOGICAL APPROACHES TO ASSESSING EFFICIENCY OF TAX INCENTIVE BENEFITS IN THE REGION

Author(s):  V.L. Anichin, Belgorod State Agricultural University named after V. Gorin, Belgorod, Russia, vladislavanichin@rambler.ru

A.N. Prosenko, candidate of Sciences, Belgorod State Agricultural University named after V. Gorin, Belgorod, Russia

A.I. Khudobin, Belgorod State Agricultural University named after V. Gorin, Belgorod, Russia

Issue:  Volume 46, № 1

Rubric:  Public and business finance

Annotation:  The method of assessing the effectiveness of tax incentives in the region is intended to serve as an important tool in making management decisions on the prospects of tax benefits. The methodology should be suitable for assessing the tax benefits that are already being applied. In any case, the main criterion is the budgetary effect calculated on the scale of the present value. It allows judging the received or expected effect in the prices of the current year in which the conclusion on efficiency of the tax benefit is accepted. The principal difference is that in the first case, when the effect of the applied benefit is estimated, the procedure of increasing (compounding) should be applied, and in the second – the procedure of discounting. The selective application of extension and discounting procedures makes it possible to make an objective comparison of the effectiveness of various benefits even if their periods of validity do not coincide. The use of the indicator «average annual budgetary effect», calculated for each benefit, opens up additional possibilities for comparison.

Keywords:  tax incentives in the region, method of evaluation, efficiency, discounting, capacity, and budgetary effect

Full text (PDF):  Download

Downloads count:  380