CIRCULAR TAXATION DUE TO THE CIRCULAR ECONOMY: EUROPEAN UNION EXAMPLE

Transition from “take-make-dispose linear economy” to circular economy has become significant importance and prominence in recent years for the aim “to develop a sustainable, low carbon, resource-efficient and competitive economy”. Parallel to sustainable development circular economy aims to promote resource efficiency by minimizing waste and maximizing the value of resources. Resource efficiency, sustainable development, effective management of waste are important cornerstones of circular economy. While as a substructure circular economy has becoming a significant key model for the World; superstructure has been being reshaped such as law, constitutions, public administration. In this study circular economy is considered in the respect of legislation especially taxation law. There are plenty legislation trends in circular economy. These are; setting strict environmental product standards, creating the role out environmental ‘scores’ for all products on the market, developing and mainstreaming certifications and warranties for recycled materials, strengthening universal ‘Right to Repair’ legislation, tightening producer responsibility regulations, cutting taxes on circular products and services and increase them on linear ones. In the scope of tax systems naturally in taxation legislation, certain types of taxes has become key term of taxation system On the grounds of the fact that circular taxes emerged and has become vital and versatile role in tax systems. When it comes to European Union, via harmonisation and approximation circular fiscal policies and circular tax can be implemented among the member states and candidate states. The radical shift of fiscal policies among the European Union has created new debates about approximation and harmonisation of circular tax legislation. This study is important for the literature by discussing the current situation, future of tax systems and alternative solution proposals which are analysed due to the emergence of the circular economy in European Union case. The aim of the study to reveal the panorama of the current environmental taxation system, to reveal the importance of the tax system in the process of the transition to circular economy as an arising phenomenon; circular taxes, to discuss the importance of circular taxes than environmental taxes, to discuss possible effects of circular taxes and essential precautions, demands and barriers of circular taxation in European Union case. The official data of European Union have been used in this study.