THE KEY STATE TAX POLICY PROBLEMS UNDER CONDITIONS OF WAR

Abstract

Introduction. The article examines the key problems of forming and implementing state tax policy in Ukraine under conditions of full-scale war. The study emphasizes that the war has created significant economic challenges, including a reduction of the tax base, regional imbalances, destruction of infrastructure, and a growing need for financial resources to support national defense and recovery. In these circumstances, the role of tax policy becomes crucial for ensuring stable budget revenues and maintaining the functioning of the state. Purpose. The purpose of the article is to comprehensively highlight the main problems of the formation and implementation of the state's tax policy in wartime and to develop scientifically based recommendations for their solution. Methods. The following methods were used in the study: formal-dogmatic, systematization, structural, international comparative analysis, situational (case study) analysis. Results. The research identifies several priority directions for improving tax policy. One of the most important tasks is increasing the efficiency of tax administration through institutional strengthening of tax authorities, further digitalization of administrative procedures, development of risk-based control systems, and improvement of data exchange mechanisms. Such measures contribute to reducing the shadow economy and increasing voluntary tax compliance. Another significant issue is the reform of the simplified taxation system. Although it has supported small business development and self-employment, its fiscal efficiency remains limited and there are risks of tax avoidance. Therefore, modernization of this system is necessary to balance business support with fiscal sustainability. The article also highlights the importance of deepening fiscal decentralization and expanding the role of local governments in administering local taxes and fees, which can strengthen the financial capacity of territorial communities. In addition, the implementation of European tax directives is considered an important component of Ukraine’s European integration process, though it should take into account national economic interests and wartime realities. Conclusion. Overall, the study concludes that effective tax policy during wartime must combine fiscal stability, economic resilience, and the creation of conditions for post-war recovery and sustainable development.