As of October 1st, higher excise duties on alcohol, coffee, tobacco, oil derivatives and e-cigarette liquid

The Parliament of Serbia adopted the amendments to the Law on Excise Duty, which stipulate increase in excise duty on  crude oil derivatives, tobacco products and alcoholic beverages, coffee and electronic cigarette liquid by 8% compared to the current excise.

Some of these amendments will be applied from October 1 and some later.

The law stipulates that the excise duty on biofuel and bioliquids will not be increased, bearing in mind that the regulatory framework governing this matter is still under development and the tax policy of taxation of these products will be regulated in more detail after the adoption of all relevant strategic documents.

“At the same time, the excise duty on oil derivatives used for transport purposes, heating and industrial purposes which are eligible for a refraction will not change, Also, in order to reduce the costs that agricultural producers (agricultural farms and their owners) have to bear, the proposal is introduce a refraction of the excise duty paid on oil derivatives – diesel fuel and biofuel – which is used as motor fuel in agricultural machines,” the Parliament’s rationale says.

Furthermore, as stated, taking into account that the number of products subject to excise tax in the Republic of Serbia is smaller than that required by the Directive on taxation of energy products and electricity, this law proposes further harmonization with this directive, that is the implementation of an excise duty on natural gas for final consumption, which is used as a motor vehicle fuel and for heating.

The law also proposes setting up an e-excise system, a centralized information system managed by the Finance Ministry, which takes data from other registers, as well as data related to excise products and excise duty payers and enables the submission of electronic requests for the issuance of excise stamps, electronic requests for the issuance and renewal of permits for excise duty goods’ warehouses, management of business processes and communication between users of the e-excise system in relation to excise products and which records, stores and processes data in connection with the movement of excise-eligible goods.

It has been estimated that once the new amendments on higher excise duties are implemented, the Serbian budget will gain 4 billion dinars as additional income this year alone.

(eKapija, 03.09.2023)





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