Mugoša: The government continues to play with fuel excise taxes without any clear explanation

"Citizens are paying for diesel at a price that is over 50 cents per liter higher than a few months ago, which is an increase of about 40 percent. On that difference of about 50 cents, the state earns an additional 9 cents per liter based on VAT, which is also calculated on excise duties," the European Union representative said.

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Boris Mugoša, Photo: Boris Pejović
Boris Mugoša, Photo: Boris Pejović
Disclaimer: The translations are mostly done through AI translator and might not be 100% accurate.

European Union MP Boris Mugoša said that the Government continues to "play around" with fuel excise taxes without any clear explanation.

"The day before yesterday, it abolished last week's 20 percent reduction in excise duties on diesel, which is why the price of diesel remained the same, although it could have been over 10 cents lower if last week's government decision had remained in effect. I would like to remind you that the government can temporarily reduce excise duties on diesel by up to 22 cents, and this week it decided not to apply any reduction in excise duties on fuel at all," Mugoša said.

He reminded that the state earns over 70 cents in excise taxes and VAT per liter of diesel, and over 80 cents in unleaded gasoline.

"Citizens pay for diesel at a price that is over 50 cents per liter higher than a few months ago, which is an increase of about 40 percent. On that difference of about 50 cents, the state earns an additional 9 cents per liter based on VAT, which is also calculated on excise duties. The European Union has proposed three ways of potentially correcting fuel prices, which include a legal reduction in the amount of excise duties, which in our country are significantly higher than the minimum allowed level of excise duties on fuel in the EU, as well as a correction of the VAT rate, which is also calculated on excise duties, which in our country is 21 percent and in a significant number of EU countries is lower," said Mugoša.

He added that fuel prices in Montenegro are among the highest in the region.

"The 'argument' that the state is giving up revenue is not appropriate because the budget is not the budget of the Government and ministers, but the budget of citizens and the economy. In addition, state revenues in this case (excise duties, VAT) are direct expenditures for citizens, so citizens will certainly spend the less they pay for fuel on other goods and services, which will ultimately fill the budget," Mugoša said.

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