Scenario approach towards tax incentives for trading business

In the article, the possibilities of local authorities for conducting tax policy with consideration to international experience by have been examined. It has been justified that the formation of recommendations for ensuring a well-balanced taxation for trading businesses at the state and local levels can be based on alternative scenarios of changing the system of local taxes within the powers of local authorities: according to the results of choosing the most effective scenario of changes in the tax system within the existing powers, the problems of the development of trading business that cannot be solved at the local level has been identified. A scientific and methodological approach has been developed to optimize the taxation of trade business at the state and local levels, which is based on the construction of scenarios, considering the aspects of the economic development of the state, and providing a wider range of rights in the field of determining tax policy to local authorities with the specifics of the sphere of trade and the peculiarities of the national tax policy.