Serbia's Finance Ministry Proposes Removing Excise Tax Reduction Cap

Serbia’s Ministry of Finance has drafted an amendment to the excise tax law that would eliminate the current 20 percent ceiling on temporary reductions of excise duties for oil‑derived fuels. The proposed change would permit reductions above the present limit when the global oil price rises and also revises the provision that mandates tax increases if oil prices fall. The draft clarifies how the excise tax on petroleum products is to be adjusted for inflation and outlines the legal basis for past reductions that exceeded the statutory cap. The temporary reduction of excise duties on gasoline and diesel, in place until 2 August, was originally extended by a government decree on 26 July.