Improving taxation of agricultural production as a factor of successful development of the agricultural sector in Russia

Abstract

Modern reality, the current economic situation in the world put forward special requirements for ensuring the food security of the state, and conducting import substitution. The purpose of the study is to identify the advantages and disadvantages of the taxation system of agricultural producers in the form of unified agricultural tax, the impact of changes made to the Tax Code. The study used general methods of cognition (deduction and induction, analysis and synthesis, observation method, generalization and particular methods of cognition (factor analysis, comparison method, grouping, graphical and tabular methods of data presentation). Based on the results of the study, it was concluded that the application of unified agricultural tax in practice raises questions that need to be revised and clarified, especially regarding the effectiveness of the special regime used in the development of small business in the agricultural sector. It is proposed to abolish the exemption from Value-Added Tax duties of all payers of the unified agricultural tax, regardless of their income, and to use the indicator “cost-effectiveness” when setting the single tax rate from 0 to 6%. The significance of the article is the issues addressed in the article are relevant for most countries of the world.

Features of taxation in agriculture in the Russian Federation and abroad: comparative analysis

“…In addition, the intensification and growth of entrepreneurial activity in the agricultural sector contribute to improving the standard and quality of life of the rural population. [7] The study identified deficiencies in the single agricultural tax, such as: -low interest of taxpayers in its application; -The need for constant monitoring of income from the sale of agricultural products so that it does not exceed 70 per cent of total income; -Unlike the general tax regime, in which the list of expenses is open, while under a single agricultural tax -closed; -loss of part of the market in the conditions of interest of large processing enterprises and retail chains in VAT (before making corresponding changes); -The special tax regime in the form of a single agricultural tax is not sufficiently flexible and therefore it is not possible to regulate certain processes in the productive sector; the main goal of introducing a single agricultural tax is to increase the investment attractiveness of agricultural production.…”

“…It is proposed to abolish the exemption from value added taxes of all payers of a single agricultural tax, regardless of their income, and use the indicator. [7]…”

Legal regulation of financial support for agricultural producers

“…In the modern conditions of the development of the Russian economy, the issue of food security of the country comes to the fore, and the strategy of agricultural development should be focused on the self-sufficiency of the regions and the country as a whole. However, the existence of a separate, and even more so a wide range of types of state support for agricultural production requires a significant and national regulatory framework [15].…”

Current Problems and Transformative Aspects of Taxation: The Case of the Agrarian Sector

“…In addition, this method is widely used, in conjunction with the implementation of targeted subsidies and other budgetary mechanisms for state assistance in the agricultural sector. In the tax framework of industrialized nations, agriculture often incurs both national taxes, such as corporate income tax and value added tax, as well as municipal taxes, including land and agricultural taxes (Zotikov, N., Savderova, A., & Lyubovtseva, E. 2020).…”