ZAGREB, Nov 28 (Hina) - The Croatian parliament on Wednesday adopted laws which will increase excise taxes on cars and beer and introduce new taxes on car insurance premium, which would amount to 15 percent. The new regulations will
come into force on January 1, 2002. The state decided to increase excise taxes on cars in order to plug gaps in the budget, which occurred after the cancellation of customs duty on cars made in the European Union. The government, however, reduced the increase of excise taxes on cars by amendments. According to Deputy Finance Minister Damir Kustrak, cars worth 70,000 kuna (around DM18,520) will go down in prices by about 1,000 German mark. Due to higher excise taxes, the prices of luxury cars and cars manufactured outside the European Union will significantly increase, but the increase has been reduced in relation to the original proposal. At the proposal of the Croatian Party of Rights/the Cro
ZAGREB, Nov 28 (Hina) - The Croatian parliament on Wednesday
adopted laws which will increase excise taxes on cars and beer and
introduce new taxes on car insurance premium, which would amount to
15 percent.
The new regulations will come into force on January 1, 2002.
The state decided to increase excise taxes on cars in order to plug
gaps in the budget, which occurred after the cancellation of
customs duty on cars made in the European Union.
The government, however, reduced the increase of excise taxes on
cars by amendments. According to Deputy Finance Minister Damir
Kustrak, cars worth 70,000 kuna (around DM18,520) will go down in
prices by about 1,000 German mark.
Due to higher excise taxes, the prices of luxury cars and cars
manufactured outside the European Union will significantly
increase, but the increase has been reduced in relation to the
original proposal.
At the proposal of the Croatian Party of Rights/the Croatian
Christian Democratic Union parliamentary bench, the parliament has
obliged the government to draw up amendments to the law on customs
tariff by the next parliamentary session which would cancel customs
fees on all personal vehicles and other motor vehicles imported in
Croatia, including those made outside the European Union.
Excise taxes on personal vehicles should bring 471 million kuna
(DM124.6 million) to the budget in 2002.
As of January 1, 2002, excise tax on beer will increase from the 120
(DM31.7) to 200 kuna (DM52.9) per hectolitre. According to some
estimates, a bottle of beer in retail could go up by 50 lipa
(DM0.13)
The parliament also passed amendments to other laws on excise taxes
on tobacco products, coffee, non-alcoholic beverages and alcohol.
These are technical changes in line with witch as of January 1, the
customs administration will collect excise taxes instead of the tax
administration as it has been the case so far.
The parliament also passed laws on the organisation of two new funds
- the fund for the development and employment and the regional
development fund.
(hina) it sb