Premises and measures for governmental tax regulation of agriculture in the Mari El Repulic
Importance The research focuses on issues of the agricultural development, analyzes governmental control measures and identifies probable methods for tax incentives in the sector. Objectives Analyzing empirical data on factors impeding the AIC development in the Mari El Republic, I prepared my proposals on additional tax regulation measures in the sector, which would be based on the effective legislative regulations and clauses. Methods I conducted an economic and statistical analysis to evaluate the current condition of, and trends in the region's agriculture and its development. Analyzing clauses on improvement of the institutional environment of the AIC in terms of taxes, I approached to a combination of abstract and logic techniques, i.e. induction, deduction, analysis, synthesis, analogy, comparison, formalization and modeling. Results I reviewed statistical data on the development of agriculture in the Mari El Republic, determined challenging aspects for its advancement. The article systematized the effective measures of governmental tax control in the AIC and identified possible methods to boost positive trends in the region's AIC, considering impeding factors. Conclusions and Relevance Scientifically proven cluster policies for agriculture may fuel the development of the Russian agricultural regions. The regional cluster strategy and its elaboration should be coupled with a search for methods to evaluate available resources needed to form clusters, and examination of the institutional environment. Negative trends in the agriculture development of the Mari El Republic justify State aid measures at the federal and regional levels. Additional tax credits should be introduced in line with objectives and goals of solving fundamental challenges of the agricultural development and stimulating innovative paths for its advancement.