ZAGREB, May 26 (Hina) - Trade unions active in Croatia's oil and gas company INA on Friday objected to an increase in excise taxes on oil products, claiming the increase will kick-start inflation and bring INA close to bankruptcy. "We
fear the drastic 29-percent increase in excise tax on petrol will result in the growth of inflation, and that it will further increase INA's losses, which at present amount to a million (German) marks per day," Maja Rilovic, president of the branch trade union of oil and chemistry, told a press conference. If creditors attempt to collect their claims, INA will go bankrupt, she added. "The government has a stepmother attitude towards its own oil company and obstructs its progress," the president of INA and oil economy trade unions, Bozo Mikus, said. Only the state will benefit from an increase in excise tax, he asserted, adding
ZAGREB, May 26 (Hina) - Trade unions active in Croatia's oil and gas
company INA on Friday objected to an increase in excise taxes on oil
products, claiming the increase will kick-start inflation and
bring INA close to bankruptcy.
"We fear the drastic 29-percent increase in excise tax on petrol
will result in the growth of inflation, and that it will further
increase INA's losses, which at present amount to a million
(German) marks per day," Maja Rilovic, president of the branch
trade union of oil and chemistry, told a press conference.
If creditors attempt to collect their claims, INA will go bankrupt,
she added.
"The government has a stepmother attitude towards its own oil
company and obstructs its progress," the president of INA and oil
economy trade unions, Bozo Mikus, said. Only the state will benefit
from an increase in excise tax, he asserted, adding the state will
raise its profits on lead-free oil by 55 percent, while INA will get
nothing.
The actual increase will block INA on a longer period of time,
because even if a market pricing system for oil products is
introduced soon, INA will not be able to raise prices following this
drastic increase, Mikus said.
The trade unions have been unpleasantly surprised at the silence of
INA's management over the government moves which will determine the
company's future. The unions expect the management will take a
clear position on the government policy.
(hina) ha mm