State assumes EUR 105 million of Petrohemija's debt – Assembly adopts higher excise taxes on cigarettes

Serbia has assumed EUR 105 million of Petrohemija's debt to Naftna Industrija Srbije, as defined by the law on turning Petrohemija's debt into public debt, adopted by the National Assembly of Serbia today.

The deputies adopted the Law on the assumption of the debt of HIP Petrohemija, JSC, from Pancevo to Naftna Industrija Srbije a.d. Novi Sad and the conversion of the liabilities into the public debt of the Republic of Serbia.

The debt will be paid from the state budget in six installments by June 2019.

The Assembly also adopted the amendment to the Law on Excise Tax, whereby excise taxes on cigarettes will increase by RSD 2.28 in 2017 and amount to RSD 64 per pack. The amendments are a continuation of the harmonization of the excise tax policy with the EU acquis, especially regarding cigarettes, to the end of reducing the shadow economy regarding excise products, especially tobacco-based ones.

The excise tax will be increased by one and a half dinars each year from 2017 till 2020.

The excise tax on alcoholic drinks hasn't been planned to increase from January 1. Instead, at the end of December, the regular harmonization with the consumer price index in 2016 will be performed. Furthermore, the excise tax on coffee will not change from January 1 either, nor should excise taxes on certain petroleum products increase.

HIP-Petrohemija a.d. Pančevo

NIS a.d. Novi Sad

HIP Petrohemija Pancevo

Naftna industrija Srbije

NIS

Petrohemija debt

Law on the assumption of the debt of HIP Petrohemija JSC from Pancevo to Naftna Industrija Srbije ad Novi Sad

assumption of the debt of Petrohemija towards NIS

public debt of Serbia

Law on Excise Tax

excise tax

excise tax on cigarettes

excise tax on alcoholic drinks

excise tax on coffee