Assignment 3. Read and translate the text using a dictionary.

INDIRECT TAXES

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

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

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

In contrast to other taxes, excise duties can 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 on both public finance requirements and other political considerations. The taxes on spirits, wine and tobacco are typical examples of excise duties used as instruments of influence. The charge on pesticides and insecticides is another, more recent example of an excise duty which was introduced in Sweden to restrict the usage of pesticides and insecticides for health and environmental reasons.

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

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

Most goods are sold with VAT included in the selling price. This ranges from 7 per cent for some goods in Germany to 25 per cent in Sweden and Denmark. In the UK, VAT stands at 17.5 per cent. The Value-Added Tax normally included in the price of goods is refunded when leaving the EU. After purchasing any goods ask for the Tax-free Shopping Voucher which you need to reclaim your VAT. When you leave the EU the vouchers must be stamped at customs and all your purchases shown to them. The vouchers can then be cashed at the Refund Points. However, visitors only get the saving of 14.8 per cent on the purchase price as there is an added fee for handling of the refund.

The main difference between duty-free and tax-free shopping is that duty-free is available to everyone travelling within the EU. Tax-­free shopping, however, is only available to the non-EU members flying into European countries, which adds up to around 100 million tourists each year.

Tax-free shopping has become a big business with tourists from non-EU countries spending huge sums every year. It is a simple system which means you receive a cash-in-hand refund when you leave the country. There is often a minimum sale of between $ 30 and $100 to qualify for refund.

Assignment 4. Find English equivalents to the following phrases in the text:

общий налог (на); специальные налоги (на); что касается платежей; принято различать; предоставление конкретной услуги; чтобы получить водительские права; со стороны государства; через государственный бюджет; оборона; в случае (с); в истинном смысле слова; в отличие (от); чтобы повлиять на характер потребления; более новый пример; чтобы ограничить использование; из соображения их вредного воздействия на здоровье и окружающую среду; все Ваши покупки; могут быть обналичены; дополнительная плата (сбор); часто устанавливается минимальная стоимость (покупки).

Assignment 5. Complete the following sentences with the correct preposition:

1) Indirect taxes can be divided ………… two groups: general and special tax …..…….. consumption.

2) The general tax on consumption is levied ……….. almost all products and many services.

3) Most goods are sold with VAT included ………… the selling price.

4) VAT ranges …………. 7 per cent for some goods in Germany ………… 25 per cent in Sweden and Denmark.

5) ………… historical reasons the special taxes on consumption are called excise duties.

6) In the case of excise duties, the government doesn’t provide any specific services ………… those who pay these duties.

7) The revenue ………….. excise duties is stated ………….. the state budget.

8) In contrast ………….. other taxes excise duties can be used as an instrument to influence consumption pattern in a desirable direction …………… the society.

9) The taxes ………….. spirits, wine and tobacco are examples of excise duties used as instruments …………… influence.

10) In Sweden excise duties account ………….. a significant proportion of the state’s revenue.

Assignment 6. Answer the questions on the text:

1) What two groups are indirect taxes divided into?

2) How is the general tax on consumption called?

3) How are special taxes generally known?

4) What kind of products and services are general and special taxes levied on?

5) Where is the revenue from excise duties stated to?

6) What is the difference between excise duties and other taxes? Give typical

examples of excise duties used as instruments of such influence.

7) What is the difference between taxes and charges?

8) Where is VAT included in?

9) What is the tax rate of VAT in different countries including Russia?

10) Is it possible to reclaim your VAT when leaving the EU? Describe the

procedure.

11) What is the main difference between duty-free and tax-free shopping?

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