economy
March 21, 2026
What the state did was correct, but it will only help in the short term: Savić on reducing excise taxes on fuel
The state did a good thing by reducing excise taxes on fuel, but this can only have short-term effects, believes retired economics professor Ljubodrag Savić. Long-term consequences of rising fuel prices, he points out, will be less money in the budget, less for salaries, pensions, healthcare, and other areas.
TL;DR
- Reducing excise taxes on fuel provides only short-term benefits.
- Long-term consequences include reduced budget revenue, impacting public spending.
- Wealth redistribution, possibly through taxes on the wealthy, is suggested to help the most vulnerable.
- The current economic model based on foreign investment and cheap labor is unsustainable.
- Serbia should focus on its advantages, such as the food industry, and ensure market stability.
- The sale of NIS to MOL is influenced by political factors, particularly upcoming elections.
- The global situation, especially events in the Middle East, poses a significant threat.