EASE THE BURDEN ON CITIZENS Hadžić: Prevent price inflation, suspend fuel excise duties

SARAJEVO, (Patria) - The state should temporarily suspend the collection of excise duties on fuel, believes economic analyst Faruk Hadžić.

"The level of fuel prices in Bosnia and Herzegovina is already worrying and it is very possible that they will increase further in the coming period. Due to the high price of fuel, there will be additional pressure on the rise of prices of other products and services, which will further fuel inflation - price increases," Hadžić states in an analysis published on Facebook.

He adds that a short-term solution is the temporary suspension of Article 17 of the Law on Excise Duties in BiH, in order to suspend the collection of excise duties on fuel for three months with the possibility of extension for another three months if needed.

"In the long term, and I proposed this a few years ago, a 'variable excise duty' on fuel can be introduced, which would increase/decrease depending on the movement of oil on the world market. I will prepare and explain the concept of variable excise duty in the coming weeks. Excise duty should not be confused with road tolls for roads and highways, which are also charged per liter of fuel. They certainly, mostly go earmarked for special sub-accounts. Excise duty goes exclusively to current budget spending, without any clear purpose of expenditure," Hadžić states.

He points out that by suspending this article, the price of fuel in BiH would immediately decrease between 0.35 KM (diesel) - 0.47 KM (motor gasoline 98) per liter of fuel.