<abstract xmlns="http://www.w3.org/1999/xhtml">

<p>This paper aims to assess the impact of the effective and nominal household tax burden on household deposits in Ukrainian banks. We used the effective tax burden, which includes personal income taxes and value-added tax (VAT) paid. We considered changes in Ukrainian tax law from 2003 to 2016, which included a change from progressive income taxation to proportional income taxation, a decrease in tax rates in 2003, and an increase in tax rates in 2014–2016. The data sample consists of publicly available data on Ukrainian households’ income, savings, and taxes paid in 1996–2019. The analysis was performed using panel regression and the difference-in-difference (DID) method. The tax burden impact on bank deposits is significant and is caused partly by the shadow economy.</p>
<p>The results of the study are relevant for Ukraine and countries with similar economies. The methodological approaches developed in the paper can be used for similar studies in other developing countries.</p>
</abstract>

This paper aims to assess the impact of the effective and nominal household tax burden on household deposits in Ukrainian banks. We used the effective tax burden, which includes personal income taxes and value-added tax (VAT) paid. We considered changes in Ukrainian tax law from 2003 to 2016, which included a change from progressive income taxation to proportional income taxation, a decrease in tax rates in 2003, and an increase in tax rates in 2014–2016. The data sample consists of publicly available data on Ukrainian households’ income, savings, and taxes paid in 1996–2019. The analysis was performed using panel regression and the difference-in-difference (DID) method. The tax burden impact on bank deposits is significant and is caused partly by the shadow economy.
The results of the study are relevant for Ukraine and countries with similar economies. The methodological approaches developed in the paper can be used for similar studies in other developing countries.

Does Household Tax Burden Have an Impact on Individuals’ Savings in Banks? The Case of Ukraine

Central European Economic Journal

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.

This paper aims to assess the impact of the effective and nominal household tax burden on household deposits in Ukrainian banks. We used the effective tax...

Does Household Tax Burden Have an Impact on Individuals’ Savings in Banks? The Case of Ukraine

Published Online: Dec 28, 2021

Page range: 378 - 389

DOI: https://doi.org/10.2478/ceej-2021-0025

Keywords
direct taxes, indirect taxes, personal income tax, government revenue, taxable income, effective tax burden, consumption, income structure, spending structure, savings, bank deposits, Ukraine

© 2021 Gennadiy Sudak et al., published by Sciendo

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.

Does Household Tax Burden Have an Impact on Individuals’ Savings in Banks? The Case of Ukraine

Published Online: Dec 28, 2021

Page range: 378 - 389

DOI: https://doi.org/10.2478/ceej-2021-0025

Keywordsdirect taxes, indirect taxes, personal income tax, government revenue, taxable income, effective tax burden, consumption, income structure, spending structure, savings, bank deposits, Ukraine

© 2021 Gennadiy Sudak et al., published by Sciendo

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.

Keywords
direct taxes, indirect taxes, personal income tax, government revenue, taxable income, effective tax burden, consumption, income structure, spending structure, savings, bank deposits, Ukraine