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Slovak finance minister sets up battle with proposed tax on Russian oil processing

By Magenet Magenet 1 month ago


(Reuters) – Slovak Finance Minister Igor Matovic said on Tuesday he would suggest a special tax on Russian crude processed in the place, clashing with a federal government coalition companion as he seeks to elevate price range revenue for the state’s anti-inflation measures.

The proposal will come as European Union states also look for agreement on a tougher established of sanctions towards Russia for its invasion of Ukraine. That includes a probable oil embargo from which Slovakia has sought a short term exemption.

Slovakia relies on Russian crude, coming by way of the Soviet-period Druzhba (Friendship) pipeline from Russia. The country’s sole refinery is operated by Slovnaft, which is managed by Hungary’s MOL.

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Matovic explained the special tax could convey in around 300 million euros ($316.29 million) of extra earnings to the state spending plan, which could address some expenditures of point out steps to relieve the stress of surging inflation in the place.

He mentioned the tax of 30% really should be paid from the variation concerning the value of crude from Russia and that from other suppliers.

While Matovic explained he predicted to get sufficient help for the proposal when he submits it to the govt on Wednesday, the system is nonetheless unsure and a single coalition spouse has now criticised it.

Financial system Minister Richard Sulik, whose SaS party has opposed bigger taxes, stated the strategy could guide to better gasoline selling prices, and he has threatened to veto the proposal, TASR information agency described.

In February, the authorities experienced sought a tax on “excess gains” from nuclear energy output as it appeared for strategies to aid households cope with soaring power expenditures.

But it scrapped that tax immediately after achieving a deal to cap domestic energy selling prices with Slovenske Elektrarne, which operates the country’s two nuclear plants and is majority-owned by Italy’s Enel and Czech billionaire Daniel Kretinsky’s EPH team.

($1 = .9485 euro)

(Reporting by Robert Muller in Prague Modifying by Catherine Evans and Matthew Lewis)



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