Stability in taxation is a prerequisite for the sustainable development of the geodetic and land management business

Abstract

Recent tax reforms concerning the taxation of agricultural land, the geodesy and land management sectors, as well as businesses related to geospatial technologies and spatial analytics, have gained particular significance in the context of Ukraine’s post-war recovery. This underscores the necessity of analysing their impact on the geodetic and land management business. The aim of this study is to assess the impact of recent tax innovations affecting the geodetic and land management business on the current state and future development of these types of entrepreneurial activities. The research methodology encompasses an analysis of recent tax policy changes affecting businesses, a survey of executives from the studied entities, as well as a synthesis of the survey findings. It also includes a review of relevant tax legislation, comparative analysis, identification of trends, and forecasting of potential outcomes resulting from fiscal innovations. The research findings indicate that, in recent times, landowners and land users engaged in agricultural production have been required to pay taxes at levels no lower than the established minimum tax liability. At the same time, increases in the rates of the military levy and excise duties on fuel and lubricants have significantly affected the operations of entrepreneurs working in the fields of geodesy, land management, geoinformation technologies, and spatial analysis. Furthermore, discussions are ongoing among Ukrainian policymakers regarding the advisability of raising the value-added tax rate by 2 % at the request of the International Monetary Fund. The study has shown that these tax innovations are unlikely to contribute to the replenishment of the state budget. On the contrary, they are expect to lead to a decline in business activity, contraction of related enterprises, and a reduction in tax revenues. The research results have demonstrated that only predictability and long-term stability in taxation enable entities in the geodetic, land management, and related sectors to operate effectively and foster their sustainable development.