We cannot imagine that everyone drinks wine, which is a non-excise product, considered food. According to statistics, alcohol consumption has increased in Romania. However, revenue from excise taxes is low, according to The Tax Institute’s New Fiscal Code Changes: Inventory and Impact (2015-2023) study.

The explanation is simple: it is most likely an evasion.

Unfortunately, there is no data like VAT on the gap between how much should be collected and how much is actually collected.

The data shows that in Romania, alcohol consumption increased from 8.6 liters per capita (annually) in 2017 to 9.7 liters in 2021.

Experts believe that there are many small and medium-sized producers who do not supplement the budget, and ANAF does not seem to do anything for them. Due to such situations (the problem is not only in alcohol excise), the whole country will eventually pay higher taxes.

According to the research, revenue from excise duty on alcohol is about 6 times lower than from excise duty on tobacco.

“A comparison of alcohol excise revenue with the revenue that should theoretically be collected given alcohol consumption shows an extremely low level, below 35% over the entire period for which we have INS data (2017-2021),” it said. . shown in the document.

Even considering that some of this consumption is accounted for by beer (where the excise duty is lower than in the “countries”, but also much lower) and wine (where the excise duty is zero), the difference cannot be justified other than extremely low/high duty rates /evasion, according to specialists.

“We do not have an analysis of the excise collection gap, but it is expected to be significantly higher than VAT, and huge at that,” the study said.

Excise duty revenues have generally decreased

Regarding total excise duties, a strong downward trend can be observed, with revenues falling from 3.54% of GDP in 2016 to 2.50% of GDP in 2022, a significant decrease of 1.04% of GDP, i.e. minus 41.6% over the analyzed period. period, the sharpest decline was in 2017 and 2022.

According to the cited source, the decrease in 2017 is mainly caused by a decrease in the share of excise duties on gasoline and diesel fuel, which is explained by the cancellation of the 6 c/l surcharge introduced in 2013 from January 1, 2017. .

“The general trend of decreasing revenues (as a share of GDP) is due to the fact that excise taxes are set at a fixed amount, slightly indexed in the analyzed period, but revenues are eroded by inflation, which was especially observed in 2022. , inflation in 2021 amounted to 16%, against the background of the explosion of energy prices,” the study says.

In addition, the significant growth of GDP during the analyzed period also contributed to the erosion of the share of excise revenues in GDP.

Experts show one more thing: The massive increase in prices, including for gasoline and diesel fuel, in 2021 did not affect the increase in revenues from excise taxes, as they were set at a fixed amount. We also see a significant decrease in 2020, which is explained by the reduction in fuel consumption as a result of the quarantine measures taken to combat the consequences of the pandemic.

This research was carried out between March and June 2023 by the team formed by the founders of the Institute of Taxation – Gabriel Birish (lawyer), Ruksandra Gianu (tax consultant), Ana Bobirka (university lecturer, PhD, ASE) together with Roksana Vojka-Dorobantsu ( university lecturer, PhD, ASE), Paul Chichernea (lawyer, tax consultant), Philip Cook (tax consultant).