Abstract:

The fiscal function is one of the oldest functions fulfilled by taxes. Its crucial importance is expressed in the accumulation of most of the state budget revenues. Proper fulfillment of this function, i.e. optimization of budget revenues, requires taxes to be efficient, flexible, associated with low collection costs and ensuring the stability of revenues. It is a sine qua non condition, the fulfillment of which constitutes a permanent basis for implementing a rational fiscal policy. In today's tax systems, this is precisely the task of consumption taxes, the importance of which cannot be overestimated. The paper aims to analyze consumption taxes, including VAT and excise duty, as a critical source of tax revenues in EU countries. For this purpose, the trends in the application of consumption taxes observed in recent years, their importance compared to other budget revenues and changes in this area in 2010-2019 are presented. An attempt was also made to answer why these taxes should continue to play such a role and what conditions should be met for this to happen.