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The Government of the Republic of Serbia

In the service of citizens

Road-toll for domestic vehicles increases on EU demand

Belgrade, 7 July 2005

Serbian Minister of Capital Investment Velimir Ilic said today that the Serbian government has decided to increase the road-toll on domestic vehicles by 63 percent due to the EU demand to bring the road-toll on domestic vehicles in line with what is charged to foreign vehicles.

Velimir Ilic at today's press conference

At a press conference, Ilic explained that the EU wants to level the road-toll because of the high-set criteria and standards for maintaining international corridors. The country’s road maintenance services will thus have more funds and will be able to comply with EU demands that road repair be funded domestically.

He said that the government will also decide on further increase in road-toll for domestic vehicles, adding that the levelling of the road-toll might not be accomplished by increasing the one on domestic vehicles, but by reducing the one on foreign vehicles. This will depend on whether the tax on vehicle registration is increased and whether the excise tax on petrol goes to the road industry.

Ilic said the new road-toll is high in relation to the standard in Serbia, and yet low compared to neighbouring countries, in which five to six cents are charged per kilometre, whereas in Serbia it is five cents for foreign, and 2.9 cents for domestic vehicles.

After the increase, tollgates have recorded a rise in income as well as a 15 percent fall in domestic vehicle circulation. Simultaneously, circulation of foreign vehicles has risen by 110 percent, he added.

Ilic recalled that in 2004, approximately 80 kilometres of road were “rehabilitated” in Serbia, adding that maintenance of one kilometre costs $600 in Serbia and $30,000 in Europe.

Ilic announced that the Serbian government’s debt of 8.5 billion dinars to road services will be paid off by late August, and that a new bill on roads, which will enable extra funds for the road industry, should be adopted next year.