The Need, Essence, Tasks and Factors of Effective Tax Policy

Taxes are an integral part of the modern state, they form a tax system that is constantly changing and improving within the framework of a specific tax policy, depending on the state and development of both domestic and global economic systems. The dynamics and improvement of the tax system includes the regulation of taxation, which is carried out in accordance with the economic strategy of the state and on the basis of long-term tax policy. In the process of regulation, legislation and regulations defining the terms of taxation and tax administration are developed and adopted. Tax policy affects almost all socio-economic spheres of state activity. In particular, according to VGPanskov, the government "stimulates economic development or keeps it at the current level by manipulating tax policy."