Assessment of the Tax Potential of the Constituent Entities of the Russian Federation

The subject of the study is factors influencing the formation and use of the tax potential of regions of the Russian Federation. The purpose of the study is to determine the tax potential of the regions of the Russian Federation and identify the factors that determine it. Tax potential is presented as an indicator of the efficiency of the tax system in the region. This factor is critically important for the financial sustainability of both individual regions of the Russian Federation and the state as a whole. Analysis of regional statistical data showed that tax potential varies significantly among the regions of the Russian Federation. Its level is influenced by factors such as the volume of gross regional product (GRP), economic structure, investment levels, demographic indicators, and others. However, the main determinants are economic growth and development of the region, effective tax and social policies, and the dynamics of tax rates. The assessment of tax potential across regions of the Russian Federation revealed its uneven distribution. Economically disadvantaged regions exhibit high tax potential. This is explained by high population density, low levels of financial literacy, a significant volume of shadow economy, and other problems characteristic of regions with weak economic development. To enhance the efficiency of tax revenue use in economically disadvantaged regions, practical recommendations are proposed. These include measures to reduce tax and levy arrears and implement a system for attracting investment. It is expected that these measures will help ensure sustainable development and the realization and use of the high tax potential of economically disadvantaged regions.

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Publication Details

Journal
Finance Theory and Practice
Published
2025-08-31
DOI
https://doi.org/10.26794/2587-5671-2025-29-4-236-251
Primary Topic
Corporate Taxation and Avoidance
Type
article
Field-Weighted Citation Impact
0.00

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article

Assessment of the Tax Potential of the Constituent Entities of the Russian Federation

Natalia Baburina, K.A. Bannova, E. D. Murzakova
1 links
Finance Theory and Practice
Corporate Taxation and Avoidance
article

Assessment of the Tax Potential of the Constituent Entities of the Russian Federation

Natalia Baburina, K.A. Bannova, E. D. Murzakova
article en

Abstract

The subject of the study is factors influencing the formation and use of the tax potential of regions of the Russian Federation. The purpose of the study is to determine the tax potential of the regions of the Russian Federation and identify the factors that determine it. Tax potential is presented as an indicator of the efficiency of the tax system in the region. This factor is critically important for the financial sustainability of both individual regions of the Russian Federation and the state as a whole. Analysis of regional statistical data showed that tax potential varies significantly among the regions of the Russian Federation. Its level is influenced by factors such as the volume of gross regional product (GRP), economic structure, investment levels, demographic indicators, and others. However, the main determinants are economic growth and development of the region, effective tax and social policies, and the dynamics of tax rates. The assessment of tax potential across regions of the Russian Federation revealed its uneven distribution. Economically disadvantaged regions exhibit high tax potential. This is explained by high population density, low levels of financial literacy, a significant volume of shadow economy, and other problems characteristic of regions with weak economic development. To enhance the efficiency of tax revenue use in economically disadvantaged regions, practical recommendations are proposed. These include measures to reduce tax and levy arrears and implement a system for attracting investment. It is expected that these measures will help ensure sustainable development and the realization and use of the high tax potential of economically disadvantaged regions.

Finance Theory and PracticeVol. 29(4)
University of Tyumen (RU)
Russian Science Foundation
Openalex Percentile: Top 65%
Corporate Taxation and Avoidance
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Assessment of the Tax Potential of the Constituent Entities of the Russian Federation — Natalia Baburina, K.A. Bannova, et al. · Finance Theory and Practice (2025) | TGRS Research Map | TGRS