The purpose of our research is to monitor regulatory policy in the agricultural sector of Ukraine. State-run programs are a comprehensive instrument of direct influence of the state on the development of the agrarian sector, for which the Ministry of Agrarian Policy and Food of Ukraine is responsible for the development, implementation and evaluation of efficiency.
In order to assess the level of regulatory policy in Ukraine, we used elemental analysis of one of the most sought after and weighty global ratings – the Global Competitiveness Index.
Data analysis showed that during 2006-2017 respondents rated the agrarian policy in Ukraine not highly in the ranking of global competitiveness – by 2015 the average score did not exceed the half-value of 3.5 points. At the same time, there is a tendency to increase the evaluation of agrarian policy, as evidenced by the linear trend of the data presented.
Tax policy is one of the key factors in effective regulatory policy in the agrarian sector, as the relationship between tax burden, taxation and economic system performance is evident.
The data of the Doing Business rating (sub-index “Taxation”) indicate a constant reduction of the tax burden on enterprises in Ukraine for the period of availability of data (since 2006). Both the general tax burden and wage taxation are reduced. The greatest progress in the regulatory sphere is achieved by the indicator of time expenditures on taxation, which confirms the success of the deregulation process in this area in 2006-2018. However, this situation with a decrease in the level of taxation and deregulation of taxation was not always observed. Since the beginning of the 1990s, Ukraine’s agriculture has suffered significant losses as a result of the continuous increase in the government’s fiscal pressure on the economy.
Significant easing of tax pressure was due to the revival of agricultural enterprises. A feature of the tax regulation of agrarian enterprises is also the taxation of wages in farms. According to the current legislation, there are no wage requirements at least equal to the minimum wage and there is no single social contribution.
Key words: regulatory policy, agrarian sector, tax policy, fiscal burden, state regulation.