CROATIAN PARLIAMENT ADOPTS INCREASE IN EXCISE TAX

ZAGREB, May 26 (Hina) - With a majority of votes the Croatian National Parliament's House of Representatives on Friday adopted a packet of laws increasing excise tax for oil products, cars, alcohol, coffee, beer and tobacco products. With the adoption of these laws excise tax on petrol will increase by 29 per cent, and diesel by 13.7 per cent. A special tax on cigarettes has been increased by 50 lipa. To excise tax on cigarettes of the popular A group would be 5 kuna (US$0.58), standard B group 5.40 kuna (US$0.64) and extra C group 8.10 kuna (US$1). Despite opposition from the Government, the House adopted an amendment motioned by the Istrian Democratic Assembly that excise tax on alcoholic beverages should be 80 kuna (about US$9.4) per litre of pure alcohol, instead of the Government's motion of 60 kuna (US$7). Excise tax for a kilogram of coffee will increase from five to 20 kuna, depending on the form and degree of coffee manufacturing. Special beer tax has been increased to 120 kuna per hectolitre, or 60 kuna per hectolitre for non-alcoholic beer. Excise tax for vehicles will, as of the day of issuing in the National Gazette, be paid on the value, not the power of the engine as had been the case so far. According to assessments of the Finance Ministry, the price of beer should, after the adoption of the increase of excise taxes, increase by 6.8 per cent, coffee by four per cent, cigarettes by 10 per cent, alcohol by about 20 per cent, diesel fuel by 13 and petrol by 29 per cent. (hina) lml