EXCISE TAXES WILL CAUSE NEW PROBLEMS IN ALCOHOL MARKET

ZAGREB, June 14 (Hina) - Changes to the Law on Special Taxes, i.e. excise taxes on alcohol, which went into force on June 1, have caused a state of emergency among domestic manufacturers of alcoholic drinks, the Croatian Economic Interest Association of Alcohol Producers (GIUPPH) reported. The association believes the former high excise taxes have for the most part caused high retail prices of alcoholic drinks, which in turn caused the reduction of production and sale of these products year by year. The new excise taxes will not increase budgetary revenues but cause a further reduction of production and sale, and increase production costs and grey economy, the association believes. It also believes the outflow of money into neighbouring countries will increase and that the domestic production will decrease. In line with changes to the law on special taxes, excise taxes on one litre of pure alcohol will amount to 80 percent, which is a 100- percent increase in comparison to the former excise taxes. The association believes excise taxes on alcohol should be reduced urgently as well as that the deadline for the payment of excise taxes should be extended from 30 to 60 days. (hina) jn rml