Methodology for Assessing The Effectiveness of Local Tax Incentives

The paper proposes methodologies for evaluating the effectiveness of tax incentives at the local level. Based on a retrospective analysis, the comparative aspects of existing methodologies were evaluated, and the author’s approach to determining the effectiveness of local tax incentives was introduced. The proposed methodology enables a comprehensive and qualitative assessment of tax incentives at the level of municipalities. Furthermore, the article develops specific proposals and practical recommendations aimed at enhancing the effectiveness of tax incentives, eliminating ineffective privileges, and improving tax stimulation mechanisms.