Vučić proposes 20% fuel excise tax cut to curb inflation

President Aleksandar Vučić announced on July 14, 2026, that he will propose a further reduction in fuel excise taxes to the Serbian government. The aim is to lower prices for citizens and curb potential inflation spirals. Vučić stated he would suggest reducing excise taxes by 20%, which would significantly impact state revenue.

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For 20 percent to reduce our revenue from excise taxes on oil, so that we can maintain a normal, decent price for people, and so that we can prevent any surprise with inflation spirals.

Speaking to reporters in Paris, where he attended France's National Day parade, Vučić explained the rationale behind the proposed tax cut. He highlighted the global economic pressures stemming from ongoing conflicts in the Strait of Hormuz and Ukraine, which have driven up oil prices. "Yesterday we had a price of $78.3 per barrel, and this morning it was already $85.4," he noted, warning that prices could reach $90 if conflicts escalate.

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Yesterday we had a price of $78.3 per barrel, and this morning it was already $85.4. If the conflicts continue, it will be $90.

The president acknowledged the substantial financial burden this would place on the state. "On every liter, we lose 27 dinars," Vučić said, emphasizing the significant losses the state must absorb to maintain reasonable fuel costs for the public. He indicated that without this intervention, the price of diesel would reach 247 dinars per liter, a level he deemed unaffordable for many citizens.

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On every liter, we lose 27 dinars, then you understand how big the loss is for the state and how much the state must bear the burden.