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Business & Economics

THE EFFECTIVENESS ASSESSMENT OF EXCISE DUTIES IN VIEW OF STATE GOALS
Astrida Miceikiene, Vida Ciuleviciene

ABSTRACT. The relevance of the topic of this article stems from the predicament of excise duties, as a form of indirect tax, applied to consumer goods affecting human health and environment while at the same time acting as a key source of state budget revenues. Research problem is the way of assessing whether excise duties are an effective measure in view of state goals. The aim of this paper is to design the model for effectiveness assessment of excise duties in view of state goals. The algorithm behind the theoretical research includes summarised and systematised criteria, indicators and methods for effectiveness assessment of excise duties in view of state goals. Information contained in the databases of Eurostat, OECD and the Lithuanian Department of Statistics has been used for the research. The designed model for effectiveness assessment of excise duties in view of state goals provides the possibility to generate the respective quantitative estimate. Nonetheless, the generated estimate would be difficult to interpret due to the absence of any criteria suggesting whether the indicator value should be viewed as positive vs. negative, good vs. bad It would be reasonable to compare the resulting indicator of effectiveness assessment of excise duties with the effectiveness indicator of the excise tax in other countries. Accordingly, comparative assessment of the excise duties effectiveness indicator in Lithuania vs. equivalent indicator in Poland and Slovakia has been conducted. Not only the common final estimate, but also partial integrated indicators may be employed for the analysis and assessment of the effectiveness of excise duties in view of state goals. These indicators point to the quantitative estimate of the assessment criteria of a certain aspect. Variation of a certain criterion estimate over time (dynamics) and its effect on the complex integrated indicator could be analysed. Therefore, multicriteria model for effectiveness assessment of excise duties in view of state goals enables adopting reasonable and equitable decisions on improvement of excise taxes. The designed multicriteria assessment model can also be adjusted for varying conditions by adding additional indicators or removing certain indicators that have already been included .

KEYWORDS:  effectiveness of excise duties, state goals, multicriteria assessment, Lithuania, Poland and Slovakia.

JEL classification:  H21, H71, C54.