Half of the Money from the Sale of Fuel goes to the State?

June 16, 2018 12:00 PM

The burden on the price of fuel at retail fuel stations in BiH is around 50 %, according to data of the Indirect Taxation Authority (ITA BiH).

The burden of 50 % in BiH is somewhat smaller than the burden in majority of other European countries. For example, taxes make 60 % of the total price in Germany, while the margin of the distributor amount to about 6 %.

According to Ratko Kovacevic, spokesperson for ITA, fuel in BiH is burdened with excise duties of 30 fenings, while the tolls are divided into 15 fenings for maintenance of roads and 25 fenings for motorways. A value added tax of 17 % is also paid on the total price.

“For example, if the price of a fuel in BiH is 2.30 BAM, the total tax burden at this price is 1.13 BAM. If the price of a liter of diesel in BiH is 2.17 BAM, the total tax burden at that price is 1.02 BAM,” noted Kovacevic.

Considering countries, the most expensive fuel is on Iceland and Hong Kong, whose price is 2.13 USD per liter. For comparison, the price of a liter of fuel in BiH is 1.33 USD. Countries where fuel prices are similar to ours are Yemen, Macedonia, Turkey, Japan, Bulgaria, Grenada, Chile, Dominican Republic and Lithuania.

The cheapest fuel is in Venezuela and its price is 0.01 USD, which is followed by Iran, Sudan, Kuwait and Algeria with the price of 0.30 USD. Of the 167 countries with available prices of fuel on June 12, fuel is cheaper in 113 of them. When it comes to Europe, fuel is cheaper only in Moldova, Belarus, Russia and Ukraine.

To recall, the increase in the prices of fuel in the global market was influenced by stronger economic growth since January this year, especially China, Japan, America and the EU, which increased demand for petroleum products. Prices were further increased after the US retreated from the Iranian nuclear agreement, as well as because of the instability in Syria and the problems in Venezuela, which led to decreased production, and thus lower availability of fuel products on the world market.

(Source: Radiosarajevo.ba)

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