Slovak finance minister sets up battle with proposed tax on Russian oil processing
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(Reuters) – Slovak Finance Minister Igor Matovic claimed on Tuesday he would suggest a particular tax on Russian crude processed in the region, clashing with a government coalition spouse as he seeks to elevate spending plan earnings for the state’s anti-inflation measures.
The proposal arrives as European Union states also seek out settlement on a more durable established of sanctions towards Russia for its invasion of Ukraine. That incorporates a achievable oil embargo from which Slovakia has sought a temporary exemption.
Slovakia depends on Russian crude, coming via the Soviet-period Druzhba (Friendship) pipeline from Russia. The country’s sole refinery is operated by Slovnaft, which is managed by Hungary’s MOL.
Matovic explained the distinctive tax could carry in around 300 million euros ($316.29 million) of more revenue to the point out finances, which could go over some expenses of point out measures to relieve the load of surging inflation in the place.
He mentioned the tax of 30% ought to be compensated from the distinction concerning the value of crude from Russia and that from other suppliers.
While Matovic explained he predicted to get ample assist for the proposal when he submits it to the government on Wednesday, the system is continue to unsure and a single coalition husband or wife has currently criticised it.
Financial system Minister Richard Sulik, whose SaS bash has opposed larger taxes, stated the program could guide to better gas charges, and he has threatened to veto the proposal, TASR information company described.
In February, the federal government had sought a tax on “excessive income” from nuclear energy creation as it looked for means to assist households cope with soaring vitality charges.
But it scrapped that tax just after achieving a offer to cap residence electricity prices with Slovenske Elektrarne, which operates the country’s two nuclear vegetation and is majority-owned by Italy’s Enel and Czech billionaire Daniel Kretinsky’s EPH group.
($1 = .9485 euro)
(Reporting by Robert Muller in Prague Enhancing by Catherine Evans and Matthew Lewis)
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