Finance minister requests EU stand on excise tax

Serbian Finance Minister Diana Dragutinovic has asked the EU Delegation in Serbia to come out with an official stance on the amendments to the Excise Tax Law. She asked whether the amendments to the Excise Tax Law violated the directives of the EU and Serbia's Stabilization and Association Agreement (SAA). Finance minister requests EU stand on excise tax In a letter to Head of the EU Delegation to Serbia Vincent Degert, the finance minister repeated that "the EU directive does not prohibit prescribing different excise rates for different types of petrol and diesel fuels." "We learned from unofficial sources that the European Commission (EC) is concerned about the recent changes in excise taxes on oil derivatives, in the sense that the new rates violate the SAA," she said in the letter made available to Tanjug. Dragutinovic stressed that the Finance Ministry always strived to stay within the EU regulations and believed the amendments to the Excise Tax Law, passed on December 29 last year, were fully harmonized with current EU directives. She also reminded Degert that "the EU directive does not prohibit prescribing different excise rates for different types of petrol and diesel fuels." “Since both foreign and domestic distributors in Serbia will be paying the same rates for the same types of fuel, the proposed solutions do not undercut the liberalization of the Serbian oil derivatives market,” believes the finance minister. According to her, these solutions are a step towards full harmonization with the EU directive, since the excise policy adjustment reduces the difference in excise charges between diesel and petrol fuels, which is in line with the EU policy. Diana Dragutinovic (FoNet, file)

Finance minister requests EU stand on excise tax

In a letter to Head of the EU Delegation to Serbia Vincent Degert, the finance minister repeated that "the EU directive does not prohibit prescribing different excise rates for different types of petrol and diesel fuels."

"We learned from unofficial sources that the European Commission (EC) is concerned about the recent changes in excise taxes on oil derivatives, in the sense that the new rates violate the SAA," she said in the letter made available to Tanjug.

Dragutinović stressed that the Finance Ministry always strived to stay within the EU regulations and believed the amendments to the Excise Tax Law, passed on December 29 last year, were fully harmonized with current EU directives.

She also reminded Degert that "the EU directive does not prohibit prescribing different excise rates for different types of petrol and diesel fuels."

“Since both foreign and domestic distributors in Serbia will be paying the same rates for the same types of fuel, the proposed solutions do not undercut the liberalization of the Serbian oil derivatives market,” believes the finance minister.

According to her, these solutions are a step towards full harmonization with the EU directive, since the excise policy adjustment reduces the difference in excise charges between diesel and petrol fuels, which is in line with the EU policy.