National Tax Research Articles

System-wide and targeted principles of legal provision of national tax security

The principles, acting as the basis of any social system, are of particular importance for the legal provision of national tax security as a systematic public management activity carried out in a legal form and aimed at countering threats to the accumulation of tax revenues. The importance of principles is not limited to their ontological, axiological, epistemological and pedagogical roles, but also manifests itself in purely applied functions: conflictological, hermeneutic and directly regulatory. The principles of legal provision of national tax security are defined as ideas and attitudes that form conceptual and organizational basis for the emergence, modification and termination of legal relations that develop inside and outside the system of public administration. Such relations are concerned with receiving into the budget system such an amount of taxes that corresponds to the planned, taking into account the need for full financing of the functions and tasks of the state both in the current period and for the purposes of long-term development. The following groups of principles of legal provision of national tax security are identified: system-wide, targeted, functional, organizational and procedural. Two groups of principles that determine the functioning of all subsystems of administrative activities to ensure the national tax security are described in detail: system-wide and targeted. The first group includes legality; systematic and comprehensive application by public authorities of measures to ensure tax security; priority of public interests while taking into account the legitimate interests of individuals; mutual responsibility of the state and the individual; priority of preventive measures to ensure tax security. The following principles are targeted: the adequacy of administrative activities in tax and related areas to the nature and scale of threats; effectiveness, continuity and timeliness of legal response to threats; avoiding the creation of risks and uncertainty by state actions; support for innovative development.

The Case for an EU Cap on Interest on Underpaid Tax: Protecting the Internal Market

This article examines whether the differences in the calculation of interest on underpaid taxes among EU Member States could conflict with or impact the functioning of the EU internal market. The analysis indicates that such a conflict exists, and that an EU minimum standard protecting taxpayers’ rights is justified to remedy this while harmonizing the rules on interest accrual entirely would likely exceed the limits of the proportionality principle. The article’s starting point is the recent Danish Supreme Court ruling on beneficial ownership which recommends that the Danish legislator review national rules on interest accrual in cases of prolonged tax proceedings and consider a remedy that allows disputed amounts to be deposited with tax authorities. It evaluates the international and EU legal frameworks addressing this issue and compares interest accrual rules between Member States. The article finds that these legal frameworks offer insufficient guidance. It also discusses the Danish Supreme Court’s suggested remedy and asserts that it is ineffective and inefficient. Furthermore, this study demonstrates that it is not suitable as an EU minimum standard, and the latter should instead be designed as a maximum percentage of the disputed amount. This relatively simple approach is a suitable manner for realizing the intended objective as it would incentivize taxpayers to pay their tax bills on time while safeguarding their fundamental human rights wherever they are established in the EU. Moreover, it would prevent placing undue administrative burdens on either taxpayers or tax administrations and would not impede Member States’ abilities to design their tax administrative procedures to fit their national tax systems and practices. Tax surcharges, tax penalties, Interest, EU, Internal Market, taxpayers’ rights

Методологічні основи розробки податкової політики країни

The article is devoted to the problems of determining the methodological bases for the development of the country’s tax policy. The institutional powers of the main regulators of tax policy are defined. These regulators, when interacting, must comply with the criteria of Nash equilibrium in order to ensure sustainable socioeconomic development. The principles of formation and implementation of tax policy are characterized, in particular, fiscal sufficiency, social justice, efficiency, effectiveness, stability, adaptability and neutrality in relation to the level of competitiveness of the payer. A two-stage algorithm for determining the efficiency and effectiveness of tax policy has been proposed. The specifics of planning and forecasting activities in the system of tax regulation of socioeconomic development are disclosed, the need for permanent improvement of the methodology of medium-term planning of tax revenues and introduction of scenario modeling is substantiated. The need to assess the financial solvency of taxpayers in order to build realistic forecasts and plans is emphasized. The reasons for the occurrence of transaction costs associated with the administration of taxes are disclosed, a methodical approach to their distribution into ex ante and ex post expenses is substantiated. The features of the formation of tax policy under the conditions of further implementation of the reform of fiscal decentralization and taking into account Samuelson’s «randomness theorem» are determined. The need to find optimal parameters for the distribution of revenues from the payment of national taxes between the State and local budgets is emphasized. The role of the information component in the environment of development and implementation of tax policy is defined. The basic characteristics of the architecture of effective tax administration are determined. Promising directions of digitalization of tax administration have been identified, taking into account the peculiarities of the architectonics of fiscal space.

TAD_BERT: Automatic decision classification model for National Tax Appeals Commission in Morocco using BERT

TAD_BERT: Automatic decision classification model for National Tax Appeals Commission in Morocco using BERT

A Synopsis of the Adventurous Years of the National Tax Policy Committees of Nigeria

A Synopsis of the Adventurous Years of the National Tax Policy Committees of Nigeria

Economic Factors Influencing Homicide Rates: A European Perspective

Intentional homicide rates represent a critical societal issue, impacting public safety and social stability across <st1:place w:st="on">Europe</st1:place>. Understanding the socio-economic factors underlying these crimes is paramount for effective policy intervention. This research aims to investigate the socio-economic determinants of intentional homicides in 15 European countries over the period 2010-2021, providing insights into the complex relationship between economic indicators and violent crime rates. The study hypothesizes that economic prosperity, government debt, and access to financial services significantly influence intentional homicide rates, with countries exhibiting higher levels of economic development and financial inclusion experiencing lower homicide rates. Utilizing robust statistical and econometric techniques, including regression analysis and correlation matrices, the research examines the relationships between various socio-economic indicators and intentional homicide rates. Data spanning from national tax authorities, statistical agencies, and international organizations are meticulously analyzed to uncover meaningful patterns and associations. The findings reveal compelling associations between economic indicators and intentional homicide rates. Higher GDP per capita and greater financial inclusion are correlated with lower homicide rates, while elevated levels of government debt exhibit a negative association with homicide rates. These results underscore the multifaceted nature of crime dynamics and highlight the importance of considering broader socio-economic factors in understanding violent crime patterns. The study contributes to both theoretical knowledge and practical policymaking by offering insights into the socio-economic determinants of intentional homicides. These findings can inform evidence-based policy interventions aimed at promoting social stability and enhancing public safety across <st1:place w:st="on">Europe</st1:place>, emphasizing the importance of addressing underlying economic factors in crime prevention strategies.

IDENTIFYING BEHAVIORAL RESPONSE TO TAX CHANGE OF LABOR INCOME IN UKRAINE

Introduction. The National Revenue Strategy states that one of the directions for the further development of the national taxation system is the restoration of the progressive rates’ scale of personal income tax. Such a proposal looks appropriate and corresponds to the trends in the development of the labor market, the system of income generation in the national economy, and the demands of society. At the same time, the opportunistic reaction of taxpayers to the introduction of additional (increased) tax rates may lead to further evasion of labor income from taxation and, accordingly, an increase in tax risks of the state budget. Purpose of the article is to identificate of the behavioral response effect of the economic agents to tax change of labor income in Ukraine. Results. Changes in the taxation of labor income in 2015-2017 are characterized by the dynamics of such analytical indicators as the average effective tax rate and the tax wedge. The nominal growth of the wage fund in 2016 and 2017 is due to the following changes in taxation: an increase in the tax base and an increase in the average effective tax rate. In the short and medium term, reducing the tax burden did not have the expected positive effect, as predicted by the logic of Laffer's model. There is a significant increase in the share of wages at the average level, from 53.5% in 2012 to 63.8% in 2020. The share of labor income in the intervals from the lowest to the average earnings as of 2020 was more than 80%. The presence of an alternative system of income taxation with a significantly lower level of tax burden than the general system creates additional risks of effective implementation of personal income tax with a progressive scale of rates. Conclusions. The system of formation and distribution of labor income has undergone significant changes. The extremes of the income distribution (lowest and highest) were in relative gain compared to others. the introduction of a progressive scale of taxation rates exclusively for labor income in Ukraine does not have sufficient fiscal potential. In the case of a suboptimal political decision, with insufficient institutional capacity of control bodies and the presence of an alternative system of income taxation, there is a high probability of a significant increase in tax risks for state and local budgets.

공익법인 공시제도 강화가 공익법인의 재공시에 미치는 영향

[Purpose] This study investigated the impact of the enhancement of the disclosure system and the supervisory functions of the National Tax Service on the restatement of nonprofit organizations(NPOs). Specifically, this study analyzes whether there are differences in the restatement and the time required for restatement of NPOs before and after the 2020 financial statements. Additionally, the study analyzes whether there is a differential impact on the restatement and the time required for restatement based on the type of external auditor.
 [Methodology] Applying the methodologies of previous studies on NPOs, this study selected and analyzed a sample of 615 organization-year data from 205 social welfare NPOs in the period from 2019 to 2021.
 [Findings] Empirical analysis results indicate the following：Firstly, the restatement occurrence and duration of NPOs significantly decreased after 2020 compared to the disclosure of 2019 financial statements. This is interpreted as a reduction in the restatement occurrence and duration of NPOs due to the strengthened the disclosure system and supervision by the National Tax Service. Furthermore, the decreasing duration of restatement suggests that NPOs are expediting the restatement process, leading to a gradual improvement in financial reporting quality. Secondly, it was confirmed that the type of external auditor influences the financial reporting quality of NPOs.
 [Implications] This study is the first to empirically analyze how the strengthened disclosure system affects the restatement of NPOs. Furthermore, it contributes to the continuity of empirical research in the nonprofit sector and expands on previous research that suggests restatement occurrences and the required time can serve as variables to measure the financial reporting quality of NPOs. The research results will be valuable to management authorities, donors, and NPOs in the future by highlighting the effects and significance of strengthening the disclosure system.

국세기본법상 과세전적부심사 기회 미부여와 과세처분의 효력 - 대법원 2023. 11. 2. 선고 2021두37748 판결에 대한 판례평석 -

국세기본법상 과세전적부심사 기회 미부여와 과세처분의 효력 - 대법원 2023. 11. 2. 선고 2021두37748 판결에 대한 판례평석 -

Impact Of Oil Consumption on China's National Economy

China as a large energy-consuming country in the oil industry is particularly significant, and its economy has been affected by oil consumption to a certain extent. The purpose of this paper is to explore the impact of China's oil consumption on the national economy, and whether oil is the center of China's future development. Under the carbon-reducing background, oil in transport will gradually be replaced by new energy sources, and the transition from oil vehicles to trams is inevitable. However, China's economic development so far cannot be separated from oil, and it is very important to guarantee energy security. During the epidemic, the Chinese government's self-imposed quarantine policy led to a significant drop in the number of people traveling, reducing the demand for oil and significantly slowing economic growth. However, as the epidemic is gradually brought under control in 2022, the demand for oil, consumption and investment will gradually rise. This has led to an acceleration of economic growth. This paper analyses the impact of China's oil price volatility, policy and industrial structure changes on a number of national economic factors, namely consumption, taxation, investment and international trade, and finds that oil consumption has so far been on the rise, and accounts for a very large proportion of the economy - excluding transport, oil is also very important in other areas and cannot be fully replaced. It has been found that oil consumption is still on the rise and represents a very large part of the economy - in addition to transport, oil is also very important in other areas and cannot be completely replaced, and consumption will continue to rise, with positive effects on the economy.

NPWP vs NIK: Integrating the Single Identity Number in Taxation

The policy of integrating National ID Numbers and Tax ID Numbers as the government's initial effort to implement a Single Identity Number has various challenges in its implementation. Perceptions between policymakers that differ from public perceptions are one of the main problems that must be considered. This research was conducted to find out the perceptions and expectations of Taxpayers and Frontline Officers at the tax office regarding the implementation of the National ID Number and Tax ID Number integration policy. Data collection was carried out by literature study and interviews with 2 Taxpayers and 2 Frontline Officers. The analytical method used is qualitative descriptive analysis with an inductive approach. The research results show that there is a gap in perception between Taxpayers and the Directorate General of Taxes (DGT) due to the lack of publications where Taxpayers hope that updating data in the context of integrating National ID Numbers with Tax ID Numbers can be done automatically through the system. Frontline Officers also hope there will be no more obstacles in the updating process so that it does not disrupt other services. With this research, the writer hopes that it can become input for the DGT in making policies by considering the constraints and obstacles that may occur in its implementation so that policies can run optimally.

Analysis of Capacity Development Agenda on the Devolution Transition Plans of Local Government Units in Southern Philippines

This research investigated the imminent full devolution of services in the Philippines following the “Mandanas-Garcia Ruling” in 2018 and concretized by the E.O 138 in 2021, which augments local governments’ share in national tax revenue, bolstering their capacity and accountability. This study focused on the Southern part of the Philippines, specifically examining Local Government Units’ (LGUs) preparedness for expanded responsibilities. Employing a document analysis approach, the research evaluated the LGUs’ capacity status and delineated common and unique Capacity Development (CapDev) agendas in infrastructure, tourism, health, social welfare, and agriculture. Findings indicated that LGUs currently exhibit “low capacity,” signifying a basic capability of 20–39%, necessitating substantial interventions from national government agencies. The matrix of CapDev agendas underscored shared needs among LGUs. The study concluded by proposing indicative CapDev priorities to assist LGUs in prioritizing interventions effectively. This research contributed valuable insights into the challenges and opportunities associated with the devolution process in the Philippines, with implications for policy and practice in local governance.

Further steps in the digitalisation of tax law

The digitalization of tax law has a decade-long history, the primary goal of which is to increase government revenues and reduce tax evasion. Several elements of this digitalization process are known: the online cash register, the Electronic Road Traffic Control System (EKÁER) system and the Online Invoicing System. My main objective is to prove how useful the state-of-the-art technological solutions that have been debuting in recent years are from the point of view of public finances, since, for example, VAT revenues have more than doubled. In this study, I undertake to review the most important rules of the Online Invoicing System. After examining the legal background, I am processing a case brought before the Curia in which the plaintiff of the dispute was a VAT taxpayer who was unentitled to deduct tax, and the defendant was the Appeal Directorate of the National Tax and Customs Administration (NAV). Next, I will look at an Argentine procedure, electronic invoicing – e-Factura in Spanish – which has been optional on a voluntary basis since 2003 and has become mandatory for all taxpayers subject to VAT since 2016. The introduction of the new system was implemented in stages and was finally fully implemented by 2019. At the end of the article, I discuss the changes affecting the Hungarian regulations in 2023, and then I present the revised rules of e-VAT and finally the e-receipt.

Luxury tax perspectives: The evidence of the Republic of Belarus

The study is dedicated to the reasons for luxury tax implementation into the national taxation system. The purpose of the research is to study the emergence and experience of applying the luxury tax in various countries in order to determine the feasibility of introducing such a tax in the Republic of Belarus. Authors’ conclusions and findings have been presented against the background of the analysis of digitized texts on tax and bibliometric and scientometric analysis of the scientific field of taxation. As a testing ground for making our conclusions in terms of lessons learned from past historical experience and real economic background, the Republic of Belarus was chosen. Possible reasons for the introduction of such a tax were considered, as well as an analysis of the market for luxury goods in the Republic of Belarus and the demand for them was conducted. We have drawn some parallels between the Republic of Belarus and the Russian Federation to reach a reasonable conclusion. For this purpose, the Russian luxury goods market (premium car and real estate markets) was analyzed based on available statistics for the years 2020-2022. As the most politically controversial tax that can be not as efficient as income taxes and have unintended consequences, luxury tax was examined from the point of international experience and historical perspective. Examples of luxury goods throughout history and in real life together with historical references to the implementation of this tax were presented. The effectiveness of luxury tax and its impact that depends on a variety of factors (tax rate, types of goods and services being taxed, economic conditions, etc.) together with the modern concept of luxury tax with national specific was evaluated. Considering the situation in the Republic of Belarus, although during recent years there has been a budget deficit and there is a necessity to find new sources of state income, we didn’t find any reasons for the implementation of such a tax into the national taxation system. These types of taxes are mainly imposed in highly developed countries where people can afford “luxurious” goods and the variety of these goods is higher. In the case of the Republic of Belarus, there is a trend of decreasing the number of people whose purchasing power would allow them to buy luxury goods and the real disposable income of Belarusians has also declined, making it less likely that Belarusians will spend money on the consumption of luxury goods.

Digital Services Tax: Comparative Analysis of Individual OECD Countries and Potential Risks of Introducing a Digital Tax in Russia

The need to ensure compliance with the fiscal interests of the state requires thetransformation of essential approaches to the regulatory regulation of tax relationsin the context of the regulation of the tax base taxed in Russia. At the same time,the problems that arise when taxing the activities of digital companies abroad arerelevant for Russia. The relevance of the study is due to the fact that digitalizationhas allowed companies to access a large number of customers around the worldwithout a physical presence in the countries where these customers are located.Thus, there is a discrepancy between the level of physical and economic presencein the market country. Currently, international tax coordination can no longer beidentified only with traditional double tax treaties. In the absence of consensus,many jurisdictions have begun to formulate unilateral rules for taxation of thedigital economy. Inconsistency of these rules is likely to increase the tax burden ofa number of multinational corporations, given that each state seeks to protect itsinterests. The author discusses national digital taxes introduced in OECD countries.It is proposed to divide these taxes into three groups: income taxes, consumptiontaxes (VAT for electronic services) and hybrid taxes. Based on a comparative legalanalysis of the legislation of the states in which digital taxes have been introduced,possible scenarios for tax regulation in Russia been developed. It is concluded thatthe introduction of a digital tax in Russia is not appropriate. In addition, in the contextof the introduction of various benefits for IT companies increasing the tax burden inthe field through the introduction of a new tax does not seem logical.

Persistent use of nitrous oxide for anaesthesia in European hospitals despite its harmfulness to the climate – how emission taxation can achieve the coupling of cost-effectiveness and climate protection: observational study

BackgroundHealth care has the intrinsic obligation to preserve health. This concept is also applicable to planetary health. Nitrous oxide (N2O) lacks clinical indications in modern anaesthesia, while it is a high-potential greenhouse gas. Its seemingly low cost contrasts with the consequential externalised socio-economic costs due to its contribution to the climate crisis, which is approximately €698 per emitted ton of CO2 equivalent. This difference can be internalised through emission taxation. In this study, we aim to evaluate how much N2O – total amount and converted to CO2 equivalent – is used at a German university hospital and compare this amount to that used at European hospitals. Furthermore, how the cost of N2O usage changes under different emission taxation scenarios is calculated.MethodsThis trial was a retrospective observational study at a German university hospital with approximately 1,250 beds between 2016 and 2020. Additionally, five European hospitals from the Health Care Without Harm Network were used for comparison from a European perspective. The main outcome parameters were the amount of N2O used, in total and converted to CO2 equivalent, and the total cost at emission taxation of €0, €25, €55 and €698 per ton CO2 equivalent.ResultsAt the peak, 2,104 tCO2 equivalent in N2O was emitted in 2019. The actual cost was €14,040 in this year, while the corresponding socio-economic damage due to the climate crisis was almost €1.5 million. Other European hospitals showed comparable amounts of emissions.ConclusionsThe annual peak amount of emitted N2O corresponded to the total annual greenhouse gas emission of 188 people in Germany. To achieve a drastic reduction in use, the abandonment of recommendations by anaesthesiologic societies appears necessary, in addition to an internalisation of future costs via emission taxation, which will cause inadequate cost for a medication without relevant benefit or indication. To that end, the inclusion of health sector emissions within national or international greenhouse gas taxation, for example, the European Union Emissions Trading System, appears necessary and expedient in view of the urgent need to address the ecological transformation.Trial registrationThe trial was registered with the German Clinical Trials Register, identifier DRKS00024973 on 12/04/2021.

The effects of the national simple tax regime on the small businesses revenue and tax payment in the Ceará state – Brazil

This research examines the impact of the Simples Nacional policy on the revenue of Micro and Small Enterprises (MSEs) and their payment of taxes on goods and services (ICMS) in the State of Ceará, Brazil. The Simples Nacional is a tax collection regime created by Complementary Law No. 123/2006, with the purpose of reducing the tax burden for companies classified as Micro and Small Enterprises. The data utilized in this study was obtained from the State Treasury Department of Ceará (SEFAZ), Institute of Economic Research and Strategy of Ceará (IPECE), and Brazilian Institute of Geography and Statistics (IBGE). The difference-in-differences method was employed on a panel data structure. The results reveal an average increase in MSEs revenue ranging from 45.9% to 96.4% and an average reduction in ICMS payment between 8.5% and 11.2%. The data used in this study was not publicly accessible, thereby contributing to the literature on this subject.

The Functioning of Tax Authorities in Countries of the European Union

The paper delves into an insightful analysis of tax authority operations in various European Union (EU) member states, including Poland, Sweden, Germany, and France. This study seeks to extract valuable lessons from their practices and apply them to the context of Ukraine. Poland's tax authority, governed by the Tax Ordinance, serves as an interesting starting point for the investigation. Sweden's National Tax Agency, operating under the Swedish Ministry of Finance but independently of the government, takes centre stage as a model of centralised tax administration based on functional principles. In contrast, France's tax system integrates its state tax service into the Ministry of Economy, Finance, and Budget, showcasing a unique structural arrangement. Notably, Germany stands out with its highly proficient tax service, emphasising the importance of professional expertise in tax administration. In conclusion, this study underscores the universal nature of lessons learned from the organisational activities of tax authorities in EU member states. By implementing these insights, Ukraine can take significant steps toward optimising its tax administration, fostering trust between taxpayers and authorities, and aligning its practices with international standards. Ultimately, the paper serves as a valuable resource for policymakers and tax professionals seeking to enhance Ukraine's tax authority operations.

Local government debt and corporate tax avoidance: Evidence from China

Based on the data of National Taxation Survey from 2009 to 2015, a fixed-effect model is adopted in this paper to analyze the effect and mechanism of the local government debt on tax avoidance. The result shows the scale of local government debt is significant positively correlated with the aggressive of corporate tax avoidance. With further examination, the paper finds that local government debt has a significant "crowding-out effect" on corporate financing, which exacerbates corporate financing constraints, and thus intensifies the aggressive of corporate tax avoidance. In the heterogeneity analysis, the results show that the impact of local government debt on corporate tax avoidance has significant heterogeneity among enterprises with different property rights and different scales. This research not only expands and deepens the theoretical understanding of local government debt and corporate tax avoidance but also provides references for strengthening corporate tax compliance.

Projected health and economic impacts of sugar-sweetened beverage taxation in Germany: A cross-validation modelling study.

Taxes on sugar-sweetened beverages (SSBs) have been implemented globally to reduce the burden of cardiometabolic diseases by disincentivizing consumption through increased prices (e.g., 1 peso/litre tax in Mexico) or incentivizing industry reformulation to reduce SSB sugar content (e.g., tiered structure of the United Kingdom [UK] Soft Drinks Industry Levy [SDIL]). In Germany, where no tax on SSBs is enacted, the health and economic impact of SSB taxation using the experience from internationally implemented tax designs has not been evaluated. The objective of this study was to estimate the health and economic impact of national SSBs taxation scenarios in Germany. In this modelling study, we evaluated a 20% ad valorem SSB tax with/without taxation of fruit juice (based on implemented SSB taxes and recommendations) and a tiered tax (based on the UK SDIL) in the German adult population aged 30 to 90 years from 2023 to 2043. We developed a microsimulation model (IMPACTNCD Germany) that captures the demographics, risk factor profile and epidemiology of type 2 diabetes, coronary heart disease (CHD) and stroke in the German population using the best available evidence and national data. For each scenario, we estimated changes in sugar consumption and associated weight change. Resulting cases of cardiometabolic disease prevented/postponed and related quality-adjusted life years (QALYs) and economic impacts from healthcare (medical costs) and societal (medical, patient time, and productivity costs) perspectives were estimated using national cost and health utility data. Additionally, we assessed structural uncertainty regarding direct, body mass index (BMI)-independent cardiometabolic effects of SSBs and cross-validated results with an independently developed cohort model (PRIMEtime). We found that SSB taxation could reduce sugar intake in the German adult population by 1 g/day (95%-uncertainty interval [0.05, 1.65]) for a 20% ad valorem tax on SSBs leading to reduced consumption through increased prices (pass-through of 82%) and 2.34 g/day (95%-UI [2.32, 2.36]) for a tiered tax on SSBs leading to 30% reduction in SSB sugar content via reformulation. Through reductions in obesity, type 2 diabetes, and cardiovascular disease (CVD), 106,000 (95%-UI [57,200, 153,200]) QALYs could be gained with a 20% ad valorem tax and 192,300 (95%-UI [130,100, 254,200]) QALYs with a tiered tax. Respectively, €9.6 billion (95%-UI [4.7, 15.3]) and €16.0 billion (95%-UI [8.1, 25.5]) costs could be saved from a societal perspective over 20 years. Impacts of the 20% ad valorem tax were larger when additionally taxing fruit juice (252,400 QALYs gained, 95%-UI [176,700, 325,800]; €11.8 billion costs saved, 95%-UI [€6.7, €17.9]), but impacts of all scenarios were reduced when excluding direct health effects of SSBs. Cross-validation with PRIMEtime showed similar results. Limitations include remaining uncertainties in the economic and epidemiological evidence and a lack of product-level data. In this study, we found that SSB taxation in Germany could help to reduce the national burden of noncommunicable diseases and save a substantial amount of societal costs. A tiered tax designed to incentivize reformulation of SSBs towards less sugar might have a larger population-level health and economic impact than an ad valorem tax that incentivizes consumer behaviour change only through increased prices.