DOI: 10.46340/eujem.2024.10.4.3
Ilona Mishchenko, PhD in Law
Vytautas Magnus University, Lithuania
National University “Odesa Law Academy”, Ukraine
How to cite: Mishchenko, I. (2024). Foreign Trade Taxes as an Instrument of Customs Policy of Ukraine in The Light of Modern Trends and Challenges. European Journal of Economics and Management, 10, 4, 87-97. https://doi.org/10.46340/eujem.2024.10.4.3
Abstract
The article raises the issue of the effectiveness of tariff regulation of foreign trade in Ukraine. The author analyses the level of revenues from foreign trade taxes in the state budget of Ukraine over the past ten years. These taxes include, in particular, traditional customs duties and trade defence measures. The author concludes that the impact of these taxes on budget revenues is insignificant. The author analyses the causes and factors of significant fluctuations in revenues from foreign trade taxes, among which the military aggression of the Russian Federation against Ukraine and other political factors are particularly noteworthy. At the same time, it is shown that customs duties contribute to the achievement of other important goals of both the state and the private sector. For example, the imposition of import duties enables companies to predict the economic attractiveness of certain trade operations and to research and model the market. International trade taxes allow the state to respond quickly to consumer demand for certain categories of goods, and to respond promptly to military needs and the needs of ordinary consumers in the face of military aggression. In addition, a balanced policy of applying trade defence measures is intended to promote fair trade practices. The author demonstrates that Ukraine does not make full use of these measures. The author concludes that quantitative indicators of customs performance cannot be the only criteria for its effectiveness and that excessive attention to these indicators will lead to misuse by officials to improve them at any cost. The author suggests that policymakers should focus on studying factors affecting tax revenues to make tariff regulation and tariff measures really effective tools for customs and the international trade of Ukraine as a whole.
Keywords: customs duties, foreign trade taxes, tariffs, customs, customs policy, trade policy.
JEL: F13, O24.
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