Fiscal and Social Role of Excise Taxes in Russia

Abstract

The article notes that the excise taxes and their earlier counterparts over the past four centuries of the Russian history have had the prevailing value for budget revenues. Performing only a fiscal function up to 1920s, subsequently the excise taxes began to be used as an instrument of the social policy. In 1930–1991, the role of formally cancelled in the USSR excise duties was performed by turnover tax, a «universal excise duty». In 1996–2007, social and fiscal value of the excise taxes in Russia has considerably diminished. The growth in the share of excise taxes in total tax revenues in 2008–2010 occurred largely due to the global financial and economic crisis. The policy of increasing of excise rates on alcohol, tobacco and oil products above the infl ation rate in Russia in recent years is recognized by the author as absolutely justified. The conclusion that the list of excisable products in Russia should be expanded is made.

Keywords:

excises, fiscal monopoly, social function of taxes, indirect taxes, turnover tax, VAT, ad valorem and specific tax rates