Current Status and Retrospective of Excise Taxation in the Republic of Moldova

Abstract

Excise duty is a tax levied on consumer goods with inelastic demand. In general, excise duties are applied to products that are consumed in large quantities and that buyers cannot replace with other products. The main role of excise duty in the Republic of Moldova is that it contributes significantly to the state budget revenues. Excise duty has a major social role, because it helps to reduce the consumption of products harmful to both health and the environment, and thus the state reduces the consumption of harmful products in society.90. As we know, excise duties influence various economic sectors that are related to excise duty: the tobacco, alcohol, energy industries. Therefore, excise duty is relevant, because it directly influences buyers and producers. A balanced excise duty system can help to form a sustainable and healthy economic environment. CZU: 336.226.33(478); JEL: H25, H20, H30