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Government Approves Proposal to Cut Diesel Tax by 11.3 cents per Litre (UPDATE)
Friday 15 January 2010 Zoom in | Print page
Bratislava, January 15 (TASR) - A Finance Ministry proposal to cut excise-tax on diesel - by 11.3 cents per litre rather than the originally planned 9 cents - was approved by the Government on Friday.
The measure is due to be fast-tracked in Parliament and become effective as early as February 1 of this year.
"The main reason to produce the proposal was to eliminate high diesel prices for households and the business sector and thus sustain price levels of transported goods and services," wrote the ministry.
The ministry expects the proposal to bring down diesel purchases in neighbouring countries and boost the competitiveness of Slovakia's goods-transport sector.
"We've removed any risk of the introduced electronic road-tolls causing price hikes, as hauliers have been claiming," Prime Minister Robert Fico said at a press conference following the Cabinet session.
The price of diesel should therefore be lower than in Hungary and the Czech Republic. "Diesel prices will be at the level of those in Austria," said Finance Minister Jan Pociatek.
The new diesel tax rates have yet to be approved by Parliament, but should take effect as soon as possible, probably as of February 1, added Pociatek.
A tax cut of 9 cents per litre to offset the increased costs of transport after the introduction of the new road-toll system was announced by Prime Minister Robert Fico on Monday after discussions with employers unions, hauliers, oil refinery Slovnaft, and the Finance and Transport Ministries.
The Finance Ministry projects that the measure will cut state-budget revenues by between €60-102 million this year, by €70-117 million in 2011, and by €85-132 million in 2012.
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