Abstract

From October 2017 the European Union envisages the abolition of the so-called sugar quotas and minimum prices for buying sugar beet. As a consequence of these changes the sugar levies paid by the sugar factories of the Member States will cease to apply. The article identifies the fiscal effects of the abolition of these levies. The European Union and the Member States will lose some of their budget revenues. The structure of Member States’ burdens for GNI payments will also change as well as their operating balance relative to the EU budget. Through the change Poland will gain, whereas some large net contributors will lose, i.e. the Netherlands, Sweden and the United Kingdom.

Highlights

  • From October 2017 the European Union envisages the abolition of the socalled sugar quotas and the minimum prices for buying sugar beet (Council Regulation of 16 December 2013)

  • The article identifies the fiscal effects of the abolition of sugar levies

  • The European Union will lose some of its budget revenues while the Member States will lose their revenue resulting from the difference between 25% of their administrative costs and the much lower actual costs of collecting these levies

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Summary

Introduction

From October 2017 the European Union envisages the abolition of the socalled sugar quotas (limits for Member States in the production of sugar, glucose and inulin syrup) and the minimum prices for buying sugar beet (Council Regulation of 16 December 2013). These changes are part of the reform of the agricultural market initiated in 2013 towards further liberalization and adaptation to global conditions (World Trade Organization, 2016; European Commission, 2013). The aim of the paper is to identify and assess the fiscal consequences of the abolition of sugar levies for both Member States and the European Union. Economics and Business Review, Vol 4 (18), No 4, 2018 out for the Member States and the EU on the basis of simulations of changes in the budget conditions in force in 2013

Types of sugar levies
The purpose of sugar levies
Fiscal significance and main payers of sugar levies
Change in the burden on Member States for GNI payments
Changes in the operating balance
Findings
Conclusions
Full Text
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