Mugoša: The government continues to adjust excise taxes on diesel and unleaded gasoline to the detriment of citizens and the economy

The government continues to adjust excise duties on diesel and unleaded gasoline without explanation, obviously to the detriment of citizens and the economy. Instead of fuel prices being lower than last week, they have increased by 6 and 7 cents, respectively, announced today Boris Mugoša, a member of the European Union in the Parliament of Montenegro.

According to him, the Government is not using the legal mechanism at its disposal.

"...Because with yesterday's latest decision, it reduced excise taxes on diesel by only 10 percent (or 4 cents) and the law allows it to reduce it by 50 percent (22 cents), while the measure to reduce excise taxes is not applied to unleaded gasoline. Citizens pay for diesel at a price that is 54 cents per liter higher than a few months ago, which is an increase of 40 percent. On that difference of 54 cents, the state additionally earns over 9 cents per liter based on VAT, which is also calculated on excise taxes. Currently, the state earns over 70 cents per liter of diesel through excise taxes and VAT, and over 80 cents per liter of unleaded gasoline," Mugoša pointed out.

He added that the continuous increase in fuel prices is also affecting the prices of numerous goods and services.

"The government has not accepted the proposal of the European Union representatives to adopt a legal solution that gives it the opportunity to temporarily reduce VAT (a similar solution was adopted by Croatia) on fuel, which is 21 percent in our country and has a lower rate in a significant number of EU countries. Fuel prices in Montenegro are among the highest in the region," said Mugoša.