THE ECONOMIC ESSENCE OF INDIRECT TAXES AND THEIR ROLE IN SOCIO-ECONOMIC DEVELOPMENT
Keywords:
indirect taxes, VAT, excise tax, fiscal policy, socio-economic development, tax administration, digital economy, fiscal sustainability.Abstract
Indirect taxes play a significant role in modern fiscal systems by ensuring stable public revenues and influencing economic behaviour. The growing importance of value-added tax (VAT) and excise duties has increased the relevance of studying their theoretical foundations and socio-economic implications. This paper examines the economic essence of indirect taxes and evaluates their contribution to socio-economic development under conditions of economic transformation and digitalization. The study employs comparative analysis, systematic review of scientific literature, and institutional analysis of international taxation practices. The findings indicate that indirect taxes contribute substantially to fiscal sustainability, market transparency, and economic modernization. Furthermore, digital technologies have enhanced the effectiveness of indirect tax administration through electronic invoicing systems, real-time reporting, and risk-based compliance mechanisms. The study concludes that improving the theoretical foundations of indirect taxation can strengthen fiscal policy effectiveness and support sustainable socio-economic development, particularly in developing economies such as Uzbekistan.
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