Excise Duty Gap on Cigarettes

Inžinerinė ekonomika = Engineering Economics 2018
Māris Jurušs, Baiba Šmite-Roķe, Līga Gasūne

Countries are engaged in a tax competition that leads to a reduction of the budget revenue. The aim of this research is to evaluate taxation of the luxury goods, to evaluate their potential distributional effect and types of goods to be taxed. Results demonstrate that tax on luxury goods could be used to compensate the reduction of tax revenues. The tax on luxury goods would reduce the regressive tax burden of consumption taxes. However, there is a need for more studies of what goods could be considered a luxury as well as how to organize tax administration in open markets.

Keywords
luxury goods, tax on luxury goods, consumption tax, the tax burden
DOI
10.5755/j01.ee.29.4.20335

Jurušs, M., Šmite-Roķe, B., Gasūne, L. Excise Duty Gap on Cigarettes. Inžinerinė ekonomika = Engineering Economics, 2018, Vol.29, No.4, pp.419-423. ISSN 1392-2785. e-ISSN 2029-5839. Available from: doi:10.5755/j01.ee.29.4.20335

Publication language
English (en)