FUNCTIONING OF THE TAX SYSTEM OF UKRAINE UNDER THE INFLUENCE OF THE WARTIME ECONOMY: CURRENT TRENDS

Abstract

The article examines the functioning of the tax system of Ukraine under the influence of the wartime economy and identifies current trends in its transformation. The study analyzes the dynamics of the main macroeconomic and fiscal indicators during 2020–2025, including GDP growth rates, inflation, state budget deficit, tax revenues, and the volume of international financial assistance. It has been established that the full-scale war significantly affected the structure of state budget revenues, caused a reduction in the tax base, increased the budget deficit, and strengthened the dependence of public finances on external support.

The research reveals that under the conditions of the wartime economy, the tax system of Ukraine is gradually adapting to crisis challenges through the improvement of tax administration mechanisms, digitalization of fiscal processes, and activation of measures aimed at supporting economic activity. Particular attention is paid to the analysis of changes in the structure of state budget revenues and the growing role of non-tax revenues and international financial assistance in ensuring the financial stability of the state.

The main problems of the functioning of the tax system under wartime challenges have been identified, including instability of tax legislation, narrowing of the tax base, high level of shadow economic activity, macroeconomic instability, and dependence on international financial support. Strategic directions for ensuring long-term tax sustainability in Ukraine have been substantiated, including the improvement of tax administration, expansion of the tax base, digitalization of tax processes, reduction of the shadow economy, and support for business and investment activity. It is proved that ensuring the financial stability of Ukraine requires a comprehensive combination of fiscal, institutional, and economic mechanisms aimed at maintaining budget balance and supporting the post-war economic recovery of the country.