Excise taxes on fuel remain 20% lower next week

Serbia's government has again extended the temporary reduction of excise duties on oil derivatives, keeping them 20% lower than legally prescribed until August 16. This decision continues a measure first implemented on March 13 to mitigate fuel price increases. The reduced excise tax on leaded gasoline will be 61.24 dinars per liter, on unleaded gasoline 57.60 dinars, and on diesel 59.23 dinars. The full excise tax amounts, according to the Excise Law, are 76.55 dinars for leaded gasoline, 72 dinars for unleaded, and 74.04 for diesel. Previously, excise duties were reduced by more than 20% using a different act, the Decree on Limiting Oil Derivative Prices, based on the Trade Law. Forbes Serbia noted this approach as a "legally challenging solution." Consequently, the Ministry of Finance is working on amendments to the Excise Law. The most significant proposed change is removing the 20% cap, which is the maximum reduction the government can currently implement under the Excise Law when global crude oil prices rise.