TRANSFORMATION OF THE TAX SYSTEMS OF EU MEMBER STATES AND UKRAINE: CHALLENGES, TRENDS, AND PROSPECTS FOR HARMONIZATION

Анотація

The article presents a systematic comparative analysis of the tax system structures in EU countries and Ukraine as of 2023. It focuses on key fiscal indicators: the share of indirect taxes in total revenues, maximum personal income tax rates, corporate income tax rates, and social contributions. The results show that Ukraine relies more on indirect taxes (40% vs. 35% in the EU) and has lower personal income tax (18% vs. 50%) and corporate tax rates (18% vs. 20%). The share of social contributions is also lower (10% vs. 15%). These differences indicate that Ukraine’s tax system puts greater pressure on consumption than on income or capital, unlike EU models. Such a structure may increase inequality, reduce investment attractiveness, and heighten vulnerability to external shocks. The article assesses the implications of these fiscal disparities, noting risks of a consumption-based approach in an emerging economy context. Additionally, the analysis addresses Ukraine’s challenges in meeting EU fiscal convergence criteria. A shift toward a more balanced and equitable tax base is recommended to align with European standards and improve fiscal sustainability. The article proposes reforms to enhance fairness and efficiency, guided by international practices and Ukraine’s socio-economic context. The findings offer valuable insights into modernizing tax policy in transition economies and support evidence-based decisions by policymakers, economists, and integration experts.

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