The Assembly will most likely not vote on amendments to the law on excise duties and value-added tax and on the bill on temporary price restrictions, which should reduce the prices of fuel and basic foodstuffs due to procedural reasons.
The new parliamentary majority and the future government want to adopt the same or slightly corrected proposals, but it may be done tomorrow or more likely - after the May Day holidays. However, as it is necessary to prepare certain by-laws and implement technical procedures for these laws, lower prices can only be expected in about 20 days.
Fuel prices are now 50 to 60 percent higher than a year ago, oil is 120 percent more expensive, and flour is 70 to 80 percent more expensive.
The new government adopts the same proposals again?
The first item on the agenda of today's Assembly is the election of its president, the second is the election of a new government, followed by these three laws that are proposals of the current government. However, the rules on the work of the Assembly provide that the proposals of the Government, after the end of its mandate, which in this case ends with the election of a new one, must be withdrawn from the procedure and archived.
Another way would be to vote on the laws first, but the ministers from the current convocation of the Government would have to explain them in the Assembly, who would then be dismissed, which was rejected as a possibility by the new majority. The option of debating the same laws today, but having them formally proposed by MPs, is also not acceptable because they must first pass parliamentary committees.
Two days ago, the opposition Social Democrats proposed to the Assembly almost identical laws as in the Government's version, with the explanation that they can be discussed today because they are not formally proposals of the Government, which would have been the former at the time of the vote.
According to "Vijesti" information, it is most likely that after the elections, be it today or tomorrow, the Government will re-adopt the same or similar laws at the first session, which it would send to the Assembly for consideration under an urgent procedure.
Excise duty on fuel is 40 or 50 percent lower
The government's current proposal to amend the law on excise taxes, which has been pending in the parliament since mid-March, foresees their reduction by 40 percent, while the SD in its proposal increased the percentage of excise duty reduction from the 25 percent they requested in February to the 50 percent they have been proposing since two years ago. days.
A reduction in excise duty by 40 percent would mean lower prices for diesel by 22 cents and gasoline by 27 cents, while a reduction in excise duty by 50 percent would lower the price of diesel by about 27 cents and gasoline by 33 cents.
Considering the monthly consumption of 26 to 27 million liters of fuel, this reduction in excise taxes would mean a lower income for the state of 6 to 7,5 million euros every month in which this measure would be applied. Which would be a significant blow to the budget.
The current proposal to amend the law on excise duties also harmonizes the excise duties for smokeless tobacco products, non-foaming fermented drinks (somersby, bamboo, gemišt,...), single-use plastics, and defines the method of excise duty refund.
The MPs earlier on the committee unanimously supported the part that refers to the possibility of reducing the excise tax on fuel, while they had reservations about some of the other points from this proposal prepared by the current Ministry of Finance. The question is whether the new government will support these other changes to the law, or whether it will leave them aside for the time being until it analyzes them in more detail, and give priority to the indisputable need for an urgent reduction of excise duties on fuel.
Oil cheaper by 15 and flour by 5 cents?
In the current proposal to amend the VAT law, it is foreseen to reduce the rate of this tax on flour and edible sunflower oil from the current seven to zero percent. Given the current prices of these foods, a liter of oil would be cheaper by about 15 cents and a kilogram of flour by four to five cents.
Considering the monthly consumption of about six thousand tons of flour, stated in the recently adopted intervention procurement plan, the state budget would be deprived of about 300.000 euros by this measure. The monthly need for edible oil is about 500.000 liters, so this reduction would deprive the budget of about 75.000 euros.
The proposal foresees a reduction of the tax rate for salt from the current 21 to 7 percent. Considering the monthly consumption of about 250 tons for the population and meat processing factories, this measure would reduce the state budget by about 200.000 euros.
With the draft law on temporary measures to limit the prices of products of special importance for people's life and health, the Parliament gives the Government the authority to lower the prices of basic products by its decisions in situations of disruption on the market, but for its implementation, it is necessary to adopt a lot of by-laws.
In these current proposals, there is no proposal to reduce the VAT rate on bread, which was proposed by the board of the Chamber of Commerce, nor to reduce the tax on cereals and animal flour, which was proposed by some farmers and representatives of the milling industry. Because if the VAT on flour was reduced to zero percent, and remained on cereals at 21 percent, it would enable the market operation of the domestic mill and animal feed industry.
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