Proposals for Solutions: Limit Margins for Oil Distributors and Urgently Reduce Fuel Excise Tax

SARAJEVO, (Patria) - Due to constant and unjustified increases in the prices of oil and oil derivatives in recent months, which have resulted in an increase in the retail price of fuel by as much as 0.50 KM, the Independent Bloc is demanding an urgent reaction from the competent state and entity institutions.

The Independent Bloc has been categorically against the introduction of new levies and excise taxes from the beginning, and they warned the public that if excise taxes were adopted in the way the governments proposed, it would only lead to an increase in prices and the cost of living for citizens, and that road construction would not be initiated.

- As a result of the introduction of excise taxes and the further increase in fuel prices, we have an absurd situation where, in addition to the increase in fuel prices, there has been a chain reaction increase in the cost of living, which is reflected in the growth of the consumer basket, stagnant wages, and the fact that there will be no road construction this year, the NB warns.

Money from excise taxes is frozen in the Indirect Taxation Authority's (UIO) accounts because there is no agreement on the distribution method. The absurdity of the situation is shown by the official data from the UIO, where in the period 2009-2017, only from fuel levies, 7.087 billion KM was collected, of which 1.11 billion KM (15.70%) was earmarked for road construction, and 5.98 billion KM (84.30%) went to entity budgets, from which administrative salaries, car purchases, travel, and party appointments were financed.

The NB calls on the authorities to act urgently to reduce the price of fuel, thereby mitigating the negative effects of the price increase, and in this regard, we appeal to finally implement the earlier proposals of the NB - to limit the margins of oil and oil derivative distributors - the implementation of earlier and adopted initiatives in the BiH Parliament, and to urgently reduce the fuel excise tax by 0.15 KM - to adopt the Law of the Independent Bloc which is in procedure.

- The NB parliamentary group in the House of Representatives of the BiH Parliament has so far submitted two legal solutions, as well as several initiatives and letters to the state and entity prime ministers, in order to reduce the excise tax and stop the rise in fuel prices, and thus the rise in the cost of living for citizens, who are living harder every day. However, the ruling parties do not want to discuss these matters - stated Salko Sokolović, president of the NB parliamentary group in the House of Representatives of the BiH Parliament, and a member of the Presidency of the Independent Bloc.

Faruk Hadžić, a member of the Presidency of the Independent Bloc and a macroeconomic analyst, points out that unfortunately, it has proven true that the increase in fuel excise taxes should not have happened, as huge funds have already been collected on this basis.

- Since 2009, over 7 billion KM has been collected based on fuel excise taxes, of which almost 6 billion ended up in budgets and was not earmarked. If we had spent these funds earmarked for road construction, we would have had GDP growth rates of 6% annually, new employment, and wage growth. Instead, we chose to invest these funds irreversibly in administration - stated Hadžić.