The role of taxation in stimulating economic development and increasing the competitiveness of EU countries

• Published in: Problems of Theory and Methodology of Accounting, Control and Analysis no. 1(60); pp. 9 - 16
• Main Authors: Grytsyshen, D.O., Yukhymenko-Nazaruk, I.A., Abramova, I.V., Islamli, J.
• Format: Journal Article
• Language: English
• Published: 30.04.2025
• ISSN: 1994-1749
• DOI: 10.26642/pbo-2025-1(60)-9-16

The article examines the trends in the development of tax systems of the EU member states. The article focuses on the dynamics of tax revenues to the common budget of the European Union. It is proved that the tax systems of the EU member states are stable and efficient, provide reliable financing of public expenditures and implementation of social programmes. The main components of fiscal revenues are indirect taxes, direct taxation and social contributions. It is established that indirect taxation remains an important component of the tax system and includes value added tax, excise taxes and duties, which provide a significant part of budget revenues. The EU tax system is multi-level, and tax revenues are distributed among European, national and local budgets, as well as social security funds. A significant portion of financial resources is allocated to social needs, which underscores the importance of social policy in the EU. Environmental taxation plays a special role in the tax systems of the EU member states, acting as a tool for implementing the whole sustainable development. The bulk of such taxes are in the energy sector, transport sector and payments for environmental pollution. This helps to encourage environmentally responsible behaviour, support innovation in clean technologies and finance environmental protection measures. Thus, the European Union’s tax system is characterised by balance, adaptability to changes in the economic environment and a focus on maintaining financial and social sustainability.