Combating exsise Smuggling: A comparative analysis of Ukraine and Poland

Resumen

The excised goods, such as alcoholic beverages and tobacco products, are the object of widespread smuggling and illegal circulation. This illegal activity leads to significant budget losses, affects the health of the population, and disrupts the level of competition in the market. In 2020 approximately 50% of all alcoholic beverages sold in Ukraine were illicit, resulting in significant tax revenue losses for the government. A 2021 report indicated that around 18.1% of the tobacco market in Ukraine was composed of smuggled or counterfeit products. This illicit market caused an estimated annual tax revenue loss of $250 million. The experience of Ukraine and Poland in the field of combating excise smuggling can be essential for the development of effective strategies and policies to combat this phenomenon. The aim of the article is to study the ways of countering illegal activities in the sphere of circulation of excise goods using the example of Ukraine and Poland. The research methodology includes: empirical method, document analysis method, comparison, and case study method. As a result of the study, an analysis of the effectiveness of Ukrainian and Polish legislation on taxation and control over the circulation of excise goods was carried out. The obtained findings can inform policymakers in Ukraine, Poland, and other European countries on how to refine and strengthen their legislation regarding the taxation and control of excised goods. Law enforcement agencies can utilize the research to improve their strategies for detecting and preventing smuggling activities, incorporating best practices identified in the study.