C) Explain the functions performed by excise duties

What Is an Excise Duty?

Indirect taxes are divided... general and special taxes... consumption. The general tax on consumption, value-added tax, or VAT, is levied … more or less all products and a large number of services. The special taxes on consumption are, … the other hand, levied on specifically selected products and services. For historical reasons, they are generally known as excise duties.

As far as payments to the state are concerned, it is common to distinguish … taxes and charges. A charge usually relates to the provision of a particular service or function... the state. The charges paid to obtain license or a passport are typical cases.

Payment... a tax does not entail any direct counter-performance the part of the state. The revenue from taxation is used – via the state budget – to finance all government activities, including defense and the education system, … instance.

In the case of excise duties, the government does not provide any specific services … those who pay these taxes. The revenue.. excise duties is stated.. the state budget. Therefore, these excise duties, even through they are sometimes called charges are in reality taxes in the true sense of the word.

Most of the excise duties in Sweden were introduced for other purposes than merely to provide income … the state. They can, … fact – in contrast … other taxes – also be used as instruments to influence consumption patterns in a desirable direction for the society. The introduction of an excise duty is, as a rule, based.. both public finance requirements and other political considerations.

The taxes on energy, spirits, wine and tobacco are typical examples of excise duties used as instruments... influence. They are also some of the oldest Swedish excise duties. The charge … pesticides and insecticides is another, more recent example of an excise duty which Was introduced to restrict the usage of pesticides and insecticides... health and environmental reasons.

In Sweden excise duties now account... a significant proportion of the state's revenue. The annual cost to the Swedish government of administering excise duties (personnel, premises, computers, etc,) amounts... 0.06 per cent of the total revenue from these taxes.

Words you may need:

excise duty – акцизний збір, акциз

distinguish – проводити відмінність

relate (to) – бути пов’язаним

entail – волоти за собою

counter-performance – дія у відповідь

via – через

amount (to) – досягати, складати

3. Open the brackets putting the verbs in the correct form: