Abstract:

For most nations the question of reforming the tax system acutely raises in modern conditions of global economic and financial crisis as the main income source of budget is taxes. The article shows that scientific disputes are usually conducted around the assessment of tax system efficiency from the perspective of state and the taxpayers and  built on the predominance of one or another type of taxation (direct or indirect). The ratio of direct and indirect taxation directly reflects the level of economic development since the collection of indirect taxes is more preferable in transition economies because of the simplicity and stability of charging and the decrease of direct taxation is due to the reduction of the General level of population welfare and increasing the number of loss-making and unprofitable organizations. The article presents the analysis of tax load influence on economic development of European Union countries and shows the structure of tax revenues of these countries over the period 2005-2015.  Grouping of European Union countries is done according to two criteria: the share of indirect taxation and the growth rate of GDP for 2015. In the study we conclude that not only through a combination of direct and indirect taxation  but also taken into account  many other factors in the development of the national economy it is possible to build tax system conforming to state fiscal interests and economic interests of taxpayers.