THE IMPACT OF INCREASING THE EXCISE DUTY ON FUEL IN ECONOMY
THE IMPACT OF INCREASING THE EXCISE DUTY ON FUEL IN ECONOMY

Summary/Abstract: Auto fuels represent an important source of revenue to the state budget by the excise levied on their pump prices. When oil prices rise, most of the states usually try to increase the price of gasoline, but not when the price falls, not to be affected the budgetary provisions. Starting with April 1, 2014, in Romania will come into force the tax measure according to which the excise duty on fuel increases by 7 cents / liter. The aim of our work is to determine the direct and indirect effects on the economy, namely in what way the main actors on the market will be affected: public authorities, economic agents (small and medium enterprises) and population (final consumers). Analyze the impact of higher excise duty on fuels means, in our opinion, to determine the effects caused by the new formula for calculating it to the state budget, the share in transport costs (direct effects) and its influence on living standards of the population (indirect effect).

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