Cigarettes, oil to be hit by excise increase

In order to cover the losses caused by the unilateral implementation of the SAA, the government will increase excise on oil, cigarettes, coffee and beer.

Izvor: B92

Tuesday, 09.12.2008.

13:36

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In order to cover the losses caused by the unilateral implementation of the SAA, the government will increase excise on oil, cigarettes, coffee and beer. The fact that starting from January 1, Serbia will begin to unilaterally implement the Stabilization and Association Agreement (SAA) means that customs on products originating from EU member-states will either be reduced or scrapped, leading to lower customs revenue in next year’s budget. Cigarettes, oil to be hit by excise increase In order to offset the losses, the government will increase excise duty on oil, cigarettes, coffee and beer. Economists say that increasing excise is the easiest way to additionally increase revenue. The current excise level for diesel will rise by five dinars, while fuel excise will increase by one dinar. Excise for all cigarette brands will initially increase by two dinars, followed by a subsequent two percent increase. Beer and excise will increase by 1.5 dinars per liter, while coffee prices will rise by ten percent. “The increase in prices has occurred because it is one of the easiest ways to fill the gaps in the budget,” says Sasa Djogovic from the Market Research Institute. “It begs the question why there is no increase in excise on other alcohol drinks, apart from beer. It seems that beer has become a luxury for us, as has coffee, two of the most popular products. Which is exactly why excise has been raised on them,” Djogovic said.

Cigarettes, oil to be hit by excise increase

In order to offset the losses, the government will increase excise duty on oil, cigarettes, coffee and beer.

Economists say that increasing excise is the easiest way to additionally increase revenue.

The current excise level for diesel will rise by five dinars, while fuel excise will increase by one dinar.

Excise for all cigarette brands will initially increase by two dinars, followed by a subsequent two percent increase.

Beer and excise will increase by 1.5 dinars per liter, while coffee prices will rise by ten percent.

“The increase in prices has occurred because it is one of the easiest ways to fill the gaps in the budget,” says Saša Đogović from the Market Research Institute.

“It begs the question why there is no increase in excise on other alcohol drinks, apart from beer. It seems that beer has become a luxury for us, as has coffee, two of the most popular products. Which is exactly why excise has been raised on them,” Đogović said.

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