Slovak finance minister sets up battle with proposed tax on Russian oil processing
(Reuters) – Slovak Finance Minister Igor Matovic stated on Tuesday he would suggest a particular tax on Russian crude processed within the nation, clashing with a authorities coalition companion as he seeks to boost price range income for the state’s anti-inflation measures.
The proposal comes as European Union states additionally search settlement on a more durable set of sanctions towards Russia for its invasion of Ukraine. That features a attainable oil embargo from which Slovakia has sought a short lived exemption.
Slovakia depends on Russian crude, coming through the Soviet-era Druzhba (Friendship) pipeline from Russia. The nation’s sole refinery is operated by Slovnaft, which is managed by Hungary’s MOL.
Matovic stated the particular tax might herald round 300 million euros ($316.29 million) of further income to the state price range, which might cowl some prices of state measures to ease the burden of surging inflation within the nation.
He stated the tax of 30% ought to be paid from the distinction between the value of crude from Russia and that from different suppliers.
Whereas Matovic stated he anticipated to get adequate help for the proposal when he submits it to the federal government on Wednesday, the plan continues to be unsure and one coalition companion has already criticised it.
Economic system Minister Richard Sulik, whose SaS occasion has opposed increased taxes, stated the plan might result in increased gasoline costs, and he has threatened to veto the proposal, TASR information company reported.
In February, the federal government had sought a tax on “extra earnings” from nuclear energy manufacturing because it appeared for methods to assist households address hovering power payments.
But it surely scrapped that tax after reaching a deal to cap family electrical energy costs with Slovenske Elektrarne, which operates the nation’s two nuclear vegetation and is majority-owned by Italy’s Enel and Czech billionaire Daniel Kretinsky’s EPH group.
($1 = 0.9485 euro)
(Reporting by Robert Muller in Prague; Modifying by Catherine Evans and Matthew Lewis)
