Authorities hiding for how much they will increase Excise Taxes on Fuel, Cigarettes and Alcohol?

fuel2At the 13th emergency telephone session on Friday, the Government of the FB&H adopted the Conclusion through which they adopted the text of the initiative on increase of the excise taxes on oil derivatives, beer and cigarettes, which were agreed by the Prime Minister of FB&H, Fadil Novalić and Prime Minister of RS, Željka Cvijanović. However, no one knows how much the government will increase the excise taxes.

Milenko Bošković, president of the Association of suppliers of petroleum derivatives in the FB&H, confirmed that no one contacted him or the association that he is leading, regarding the announced increase in excise taxes on oil derivatives.

Today’s Session

“Now, for the liter of fuel we pay VAT, excise tax which amounts to 30 fenings (Diesel) or 35 fenings (Petrol), road fee which amounts to 15 fenings and fees for construction of highways which is 10 fenings. I do not even know which part of all of these charges they are planning to increase this time,” said Bošković.

Session of the Board of the Indirect Taxation Authority of B&H will be held today at 3 p.m. in Mostar. As confirmed by Nataša Krsman, spokesperson of the Management Board of the Indirect Taxation Authority of B&H, the last initiative of entity governments will not be discussed at today’s meeting.

“Some initiatives that were already submitted and which are related to increase in excise taxes will be discussed. Entity governments are yet to agree on their attitude, and then the Indirect Taxation Authority o B&H should perform some analysis after which the Governing Board will declare regarding this issue,” said Krsman.

Chain price increase

Bošković stated that the citizens of B&H are already allocating considerable resources on behalf of the road fee.

“Fiscal and para-fiscal charges have already reached 50 % of the retail selling price,” said Bošković.

He added that the oil distributors will be forced to increase the price of oil derivatives by the amount of the increase approved by the Governing Board of the Indirect Taxation Authority of B&H.

Mesud Lakota from the Consumers Association of B&H stated that none of the authorities have contacted them regarding the increase in excise taxes.

If the increase in the excise taxes on fuel happens, Lakota believes that the chain of price increases will happen as well.

“Fuel plays a major role here and increase of fuel price will make a domino effect,” he concluded.


Government of FB&H has not consulted the Competent Ministry

Sector for pricing and market analysis at the Federal Ministry of Trade is responsible for the corrections of retail prices for oil derivatives. As they confirmed, no one from the Government of B&H haven’t consulted them regarding the increase in excise taxes on oil derivatives.

Moreover, no one informed the Sector for prices and market analysis of this ministry on how much this increase on the excise taxes will be amounted to.




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