ASSESSING THE EFFICIENCY OF TAX INCENTIVES FOR AGRICULTURAL ENTERPRISES

Abstract

This article explores the issues related to tax incentives in the agricultural sector viewed as an economic development instrument and a tool to create a qualitative effect from the use of tax aid to the agricultural industry which represents tax support as well as the ratio of tax support to GDP, value added, agricultural output, and to profit. In the scope of this research, the key and the most effective assignment of tax incentives is to encourage and expand business activities of business structures which should accumulate budget asset inflows through delivering tax payments. It is argued that an integral and indispensable element in developing and utilizing an effective tax incentive framework, for both production and agro-industrial processes in the sector of agriculture, is the implementation of appropriate commitments to ensure the quality of priority development of agribusinesses. The study focuses on a range of analysis methods to promote effective strategic tax incentives, as well as to evaluate the effects from economic and financial factors on determining indicators for tax and fees payment. In addition, the findings provide a survey on using the efficiency indicator of the tax system to implement the obligations to ensure the priority development of agricultural businesses. The study also offers an algorithm for arranging the tax incentives process to foster the agricultural sector in the national economy along with identifying and displaying the core functions of effective tax incentives. The authors suggest the priority criteria for building and implementing an effective tax incentive plan for manufacturing processes in the area of agriculture to ensure the priority development of this sector of the national economy as well as discusses the main stages of developing an effective tax policy of the agricultural sector.