The purpose of the amendments is to prevent attempts of misuse of veterans' benefits.
War Veterans Minister Jadranka Kosor on Thursday announced the possibility of introducing an upper limit on the price of cars subject to veterans' benefits.
Speaking at the government's session, she said that she hoped the government would accept the proposal that "Ferraris or Maybachs cannot be bought with such concessions".
The amendments to the law on the rights of war veterans and their families are part of measures the government is taking to bring into line with European Union standards the national legislation concerning Value Added Tax and excise duties.
The government sent to parliament for ratification an agreement with the European Commission on financing the national programme for Croatia within Instrument for Pre-accession Assistance (IPA) programmes.
The cabinet of Prime Minister Ivo Sanader also endorsed a report on the implementation of a strategy for the development of broadband Internet access.
Transport and Infrastructure Minister Bozidar Kalmeta said that thanks to the strategy, Croatia would reach the European average in broadband density by the end of 2009.
At the end of 2008, there were 2.2 million Internet users in Croatia, which is a broadband density rate of 50.6 percent as against the European average of 70 percent, according to the minister.
The government also set up an inter-ministerial working group for development cooperation and humanitarian assistance to foreign countries.