TAX POLICY UNDER MARTIAL LAW

The research subject includes the theoretical basis and mechanism of tax policy under martial law formation and realization. The study aims to determine tax policy priorities, considering the modern war challenges. In order to achieve the appropriate tasks, we used a set of methods and approaches that helped to ensure the conceptual unity of our investigation. The systemic and structural approaches, generalization methods, analytical evaluation, synthesis, comparison, scientific abstraction are applied. In the paper we distinguished the dominants of tax policy, taking the challenges of martial law and the special period into account. Also, we systematized the institutional changes in the tax policy after the full-scale war. It was determined that adaptability is the key principle of tax policy formation in Ukraine now. We compared the budget revenues' indicators of the State Budget of Ukraine after the beginning of the hybrid and full-scale aggression. The need for a comprehensive tax reform in the post-war reconstruction period has been determined. In modern conditions the dominants of tax policy should be: effective fiscal management by increasing the level of work automation, creating conditions for ensuring a stable and protected IT infrastructure, further improvement of the internal control system of the State Tax Service of Ukraine; new quality of taxes and fees administration, taking into account the large-scale challenges associated with the introduction of martial law; comprehensive fight against tax evasion based on the implementation of international standards and improvement of existing analytical tools. The war duration and the significant increase of fiscal deficit determine the need to enhance the fiscal space, which is a vital direction for further research.