THE PLACE AND ROLE OF THE CONSUMPTION TAXES IN CONTEMPORARY TAX SYSTEMS

The primary purpose of collecting the tax is financing the budget and financing of the prescribed State duties and its units. Taxes are the main source of budget and without them the state would not be able to operate and finance public goods and common needs, such as defense, protection of property and civil rights, public order, education, health, infrastructure and the like. Taxes on consumption are among the oldest forms of taxation. It is an indirect tax forms, which main characteristics are elasticity and the yield on the one hand, while on the other hand, they represent a regressive tax forms with distinct inflationary potential. Although these tax forms are one of the oldest, in modern tax systems they provide significant funding for the government budgets. Taxes on consumption represent forms of tax to be paid in connection with the operation of final goods and services in the country of consumption. The most important forms of consumption taxes are: sales tax, excises and customs.