LOWER HOUSE STARTS DISCUSSION ON INTRODUCTION OF ROAD TAX

ZAGREB, March 15 (Hina) - The Croatian parliament's House of Representatives on Thursday morning continued its session with a discussion on a draft act under which the price of fuel will increase by 40 lipa (10 pfennings) as of 1 April so that financial means may be ensured for the construction and maintenance of roads. Under draft amendments to the public roads law, the Croatian Road Management will be transformed into two companies - Croatian Motor Ways and Croatian Roads. In order to ensure means for the functioning of the new firms, a road tax of 40 lipa (i.e o.4 kuna) per litre of fuel will be introduced. The means collected in this way will be used for the construction and maintenance of roads. Besides, MPs discussed a draft act under which excise duties on petroleum products will be cut by 50 lipa (0.5 kuna) as of 1 January 2002. Thus the state will give up a part of the excise duties in the next year amounting to 900 million kuna (DM 225 million), and those means will be directed for the building of roads, Deputy Finance Minister Damir Kustrak told the Sabor's lower house. Thanks to such measures, the financing of road construction will completely be separated from the state budget as of next year, and means for that purpose will be ensured through the road tax. As of the start of 2002, 1.10 kuna (DM 0.275) per litre will be taken for the road construction. Therefore retail prices of petroleum products will rise by another 20 lipa as of next year. Owing to amendments to the relevant acts, April will see an increase of 40 lipa in fuel prices in Croatia, but until the end of this year one can expect a fall in the prices thanks to that fall of prices of petroleum products on the world market, Minister Kustrak explained. (hina) ms