Excise taxation of energy products and electricity: practice and challenges of war

Abstract

The peculiarities of legal support of excise taxation of energy products in the EU and Ukraine are investigated, in particular, the basic Directives of the Council of the EU in the field of specific excise taxation: Council Directive 2008/118/EC on the general excise duty regime Council Directive 2011/64/EU on the structure and rates of excise duty on tobacco products Council Directive 92/83/EEC on the harmonisation of excise duty structures on alcohol and alcoholic beverages; Council Directive 2003/96/EC on the restructuring of the Community system on the taxation of energy and electricity products and the Tax Code of Ukraine and the Law of Ukraine “On the Electricity Market”. A comparative analysis of the excise tax rates on some energy products for the period before the termination or cancellation of martial law in the territory of Ukraine and those that were in effect before the introduction of martial law has been carried out. Attention is focused on the legislative peculiarities of the introduction of excise taxation of electricity in Ukraine and the fulfillment of Ukraine's obligations under the Treaty establishing the Energy Community and the Association Agreement between Ukraine and the EU on the implementation of acts of energy community legislation in the field of energy. The practice of collecting excise tax on electricity has been characterized, according to which during 2018-2020 the state budget received about UAH 13 billion of excise tax on electricity. The results of the activities of controlling bodies to ensure the completeness and timeliness of excise tax revenues on electricity have been analyzed, it was clarified that the work on providing explanations to taxpayers on the correctness of tax reporting (excise tax declarations) was not ensured. The factors influencing the implementation of Council Directive No. 2003/96/EC in Ukraine under martial law and post-war recovery are identified, in particular, the priority of protecting the Ukrainian energy market and minimizing the provision of energy products from the aggressor countries – the Russian Federation and Belarus; the need to expand energy and resource efficient technologies in the context of joining the European energy system ENTSO-E; postwar restoration of power grids etc. The problematic aspects and directions of ensuring harmonization of tax legislation of the EU and Ukraine in the field of excise taxation of energy products and electricity, which included mental, political, socio-economic, institutional and taxation, are outlined.

Public Financial Management in martial time and post-war reconstruction of Ukraine: scientific support of transformations

“…UNCTAD" [28], "Реформування інформаційного забезпечення державного управління в умовах воєнного стану" [29] та ін. [30][31][32][33][34]. Інституційні засади запровадження обміну інформацією для податкових цілей у контексті виконання заходів, передбачених Планом дій BEPS (Base erosion and Profi t Shifting), та моніторинг міжнародного законодавства в цій сфері викладено у статтях науковців Академії [35; 36].…”