The government has recently decided to increase proportionally between 30 and 33 percent excise duties on cigarettes as of 1 October.
Tomaskovic said that owing to this change Croatia would have higher excise duties than requested by EU guidelines. He added that the measure would reduce revenues of tobacco producers and retailers.
TDR management has projected a reduction by HRK 98 million in the company's revenues, plus a reduction in trade revenues by HRK 30 million.
Tomaskovic went on to say that the company could not see that the state had any interest in this measure which he described as a measure with no financial and economic justification.
According to him, the measure would only bring an additional HRK 24 million into the state budget, while the illegal market would take advantage of the increase in excise duties.
The TDR executive also criticised unstable conditions in which the company was operating in view of frequent changes of the excise tariff system.
(EUR 1 = HRK 7.2)