The impact of wartime inflation on the real fiscal burden of specific excise tax rates

Abstract

The relevance of the study is determined by the intensification of inflationary processes under conditions of a wartime economy, which is accompanied by a decline in the real fiscal burden of specific excise tax rates and a weakening of the effectiveness of indirect taxation. Under conditions of high macroeconomic instability, currency volatility, logistical risks, and the expansion of the shadow market for excisable goods, particular importance is attached to ensuring the stable fiscal effectiveness of excise taxation and adapting the tax mechanism to wartime inflationary changes. The purpose of the study is to substantiate theoretical and practical approaches to preserving the real fiscal effectiveness of specific excise tax rates under conditions of wartime inflation and macroeconomic instability. Methods. The study applies methods of analysis and synthesis to generalize theoretical approaches to specific excise taxation, comparative analysis to assess the impact of inflationary and devaluation processes on the fiscal burden of excise taxes, systematization to structure the key problems of the functioning of the excise system, as well as logical generalization to formulate practical recommendations for improving the mechanism of excise regulation. Results. The economic essence of specific excise tax rates and their functional significance within the system of indirect taxation are investigated. It is identified that wartime inflation, currency devaluation, and rising logistics costs lead to a gradual decline in the real fiscal burden of specific excise taxes even under conditions of nominal growth in budget revenues. It is proven that the insufficient adaptability of the rate indexation mechanism weakens the fiscal effectiveness of excise taxation and complicates the maintenance of stable budget resources during periods of wartime instability. It is established that additional risks include the expansion of the shadow market for excisable products, smuggling processes, and the decline in the purchasing power of the population. The expediency of applying flexible indexation mechanisms, digitalization of excise administration, and strengthening analytical monitoring of excisable markets is substantiated. Conclusions. It is concluded that preserving the real fiscal effectiveness of specific excise tax rates requires a comprehensive adaptation of excise policy to the conditions of a wartime economy and inflationary instability. Prospects for further research are associated with improving mechanisms for the automated indexation of specific excise taxes, assessing their real fiscal effectiveness, and studying the impact of the shadow excisable sector on the budgetary stability of the state.