№ 12/2016

Fìnansi Ukr. 2016 (12): 21–0

TAX POLICY

SOKOLOVSKA Alla ¹

¹SESE “The Academy of Financial Management”
OrcID ID : https://orcid.org/0000-0002-1022-8215

Tax aspects of the EU acquis as landmarks of improvement of the excise tax in Ukraine

The article defines the differences of the main provisions of section VI of the Tax Code of Ukraine, by which the taxation of alcoholic beverages and tobacco products is governed, from the requirements of Council Directive 2011/64/EU and Council Directive 92/83/EEC and the directions of their elimination. It is proved that the EU-Ukraine Association Agreement does not envisage raising rates of excise duty on alcohol and alcoholic beverages and does not contain any requirement of rapid increase of tax rates on tobacco products. In order to eliminate obstacles to free movement of goods, it requires the introduction in Ukraine of the taxation of all harmonized excisable goods, which are obligatory for the taxation in EU; their identical determination as the precondition for the unique identification of excisable goods in Ukraine and EU member states; introduction of the unified approaches to the definition of tax base and to the establishment of tax rates on the goods of one excise category and tax concessions that are mandatory to provide in all EU countries. The article proposes: to harmonize the classification of excise goods and make changes to definitions of their separate categories, which do not correspond to European standards; to exclude from the list of excisable goods tobacco raw materials and tobacco waste products (commodity code according to UCC FEA 2401); to refuse the establishment of the minimum wholesale and retail prices for tobacco products; to include in the definition of beer as taxation object a mixture of beer with non-alcoholic drinks (commodity code 2206 00); to introduce the European classification of alcohol and alcoholic beverages, having allocated as part of this excise category such subcategories as “other fermented beverages” and “intermediate products”; to make changes to the classification of wines; to introduce European approaches to the establishment of rates of the excise tax on wine, other fermented beverages, intermediate goods; to align the definition and structure of an excise category “ethyl alcohol” in accordance with Directive 92/83/EEC; to establish the same tax rate for all goods covered by this category; to establish excise tax concessions on this group of goods in accordance with the mandatory exemptions provided by Directive 92/83/EEC.

Keywords:excise tax on alcohol and alcoholic beverages; excise tax on tobacco products; harmonization of excise tax.

JEL: E62, H21, H22, H87.

Sokolovska A. . Tax aspects of the EU acquis as landmarks of improvement of the excise tax in Ukraine / A. . Sokolovska // Фінанси України. - 2016. - № 12. - C. 21-0.

Article original in Ukrainian (pp. 21 - 44)

Download

Downloads :1092

1. Vovk, T., Vodyannіkov, O., & Konovalenko, І. (2004). Tax aspects of WTO law and the EU acquis. Landmarks tax reform in Ukraine. Kharkіv: Konsum [in Ukrainian].
2. European Commission. (2003, February 28). Report on the results of the negotiations on the accession of Cyprus, Malta, Hungary, Poland, the Slovak Republic, Latvia, Estonia, Lithuania, the Czech Republic and Slovenia to the European Union. Retrieved from ec.europa.eu/enlargement/pdf/negotiations_report_to_ep.pdf.
3. The European Unionion. (2001, April 30). Intergovernmental Conference on the Accession of the Republic of Bulgaria to the European Union. Negotiation Position on Chapter 10 Taxation. Retrieved from www.minfin.bg/document/773:1.
4. Council of Ministers of the Republic of Poland. (2001). Poland’s negotiation position in the area of taxation. Retrieved from abm.tobb.org.tr/hdosya/polonya%2010.pdf.
5. Commission of the European Communities. (2001, November 13). 2001 Regular Report on Poland’s Progress towards Accession. Retrieved from ec.europa.eu/enlargement/archives/pdf/key_documents/2001/pl_en.pdf.
6. European Commission. (2005, October 25). Bulgaria 2005 Comprehensive Monitoring Report. Retrieved from ec.europa.eu/enlargement/archives/pdf/key_documents/2005/sec1352_cmr_master_bg_college_en.pdf.
7. Commission of the European Communities. (2003, November 5). Comprehensive monitoring report on Poland’s preparation for membership. Retrieved from aei.pitt.edu/44596/1/poland_SEC_(2003)_1207.pdf.
8. Ukraine, European Union, EURATOM. (2014). Annex XXVIII to Chapter 4 "Taxation" section V "Economic and sectoral cooperation" of the Association Agreement between Ukraine, on one hand, and the European Union, the European Atomic Energy Community and their Member States, on the other hand (Agreement No. 984_011, June 27). Retrieved from zakon5.rada.gov.ua/laws/show/984_011/page [in Ukrainian].
9. Verkhovna Rada of Ukraine. (2010). Tax Code of Ukraine (Law No. 2755-VI, December 2). Retrieved from zakon3.rada.gov.ua/laws/show/2755-17 [in Ukrainian].
10. Verkhovna Rada of Ukraine. (2015). On Amendments to the Tax Code of Ukraine and laws of Ukraine to ensure the balance of revenue in 2016 (Law No. 909-VIII, December 24). Retrieved from zakon3.rada.gov.ua/laws/909-19 [in Ukrainian].
11. Cabinet of Ministers of Ukraine. (2016). On establishing the minimum wholesale and retail prices for tobacco products, tobacco and manufactured tobacco substitutes (Draft resolution, June 6). Retrieved from sfs.gov.ua/diyalnist-/regulyatorna-politika-/regulyatorna-politika/2016-rik/68412.html [in Ukrainian].
12. Verkhovna Rada of Ukraine. (2005). On the grapes and grape wine (Law No. 2662-IV, June 16). Retrieved from zakon5.rada.gov.ua/laws/show/2662-15 [in Ukrainian].
13. Verkhovna Rada of Ukraine. (1995). On state regulation of production and turnover of ethyl, cognac and fruit, alcoholic beverages and tobacco products (Law No. 481/95-BP, December 19). Retrieved from zakon5.rada.gov.ua/laws/show/481/95-вр [in Ukrainian].