FINANCE. TAXES. CREDIT УДК 336.2 JEL: H27, H29, H30, H39 TAXATION OF CASH PAYMENTS AS A MEANS OF LIMITING THE DEMAND FOR CASH AND DE-SHADOWING THE ECONOMY Studies have shown that the policy of the National Bank of Ukraine to reduce cash in circulation is not consistent. Its priority is to meet the growing demand for cash, rather than taking measures to limit cash flow. This opinion is confirmed by the data for 2020, when there was a rapid growth of cash in circulation, the ratio of which to GDP increased from 9.7% (at the level agreed with the IMF at 9.5%) to 12.3%. In Ukrainian realities, there is a direct relationship between the amount of cash in circulation and the level of the shadow economy. The more cash in circulation, the larger the shadow economy, the higher the level of corruption, the greater the number of criminal offenses. The NBU has in fact become an institution that forms the main condition of the shadow economy: it supplies a sufficient amount of cash for shadow circulation. Responding to the growing demand for cash requires significant funds to produce new cash. Such expenses are included in the NBU's administrative expenses estimate. In case of lack of own revenues of the NBU, financing of its losses should be carried out from the budget of the next year. To cover the possible deficit of the NBU, it is proposed to introduce a fee for cash payments. Its introduction is seen as a tool to limit the demand for cash in economic turnover, rather than as an ever-growing source of filling the budget. The payers of the fee will be persons who pay for the purchased goods in cash. The introduction of such a fee will stimulate the reduction of cash payments, and hence the shadow economy. Keywords:cash; shadow economy; cash payments; demand for cash; fee for cash payment
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