Mugoša: Diesel price 38 percent higher than a few months ago

Citizens are paying for diesel at a price that is 51 cents per liter higher than a few months ago, which is an increase of 38 percent, announced the president of the European Parliament's Caucus, Boris Mugoša.

"On that 51 cent difference, the state earns an additional nine cents per liter based on the value added tax (VAT), which is also calculated on excise duties," Mugoša said.

He stated that the state generates 75 cents in revenue from excise duties and VAT per liter of fuel, and pointed out that the continuous increase in fuel prices also affects the prices of numerous goods and services.

The European Union announced that the government is unfortunately not using the measures at its disposal, as it has reduced excise duties on diesel by 20 percent, while the law allows it to reduce them by 50 percent.

The government did not accept the proposal of the European Union representatives to adopt a legal solution that would give it the opportunity to temporarily reduce VAT (a similar solution was adopted by Croatia) on fuel, which is 21 percent in our country, and the rate is lower in a significant number of EU countries.

"Because the government has almost abolished contributions as a stable income, in the last few years it has been increasing all reduced VAT rates, such as on accommodation in tourism, books, cinema tickets, theatre performances, sports matches, introducing new excise duties on "still" wines, sugar products, cocoa and ice cream, which are included in the VAT calculation base, even though these measures essentially affect those who have less and devalue their income," concluded Mugoša.