ZAGREB, Sept 28 (Hina) - Croatia's Government on Thursday forwarded into a parliamentary procedure a draft act on changes in excise duties on petroleum products, under which those duties will be cut by 60 lipa per litre for petrol and
diesel so that retail prices of those products should not be altered. According to the proposals the Government adopted on Thursday's session, the so-called blue petrol for farmers and fishermen, which is sold them at a lower price than usual, will be available at petrol stations in the future. Deputy Finance Minister Damir Kustrak emphasised that the cut in excise duties implied that Croatia would in no way face a rise in inflation by the end of this year. Thus, the country remains in a zone of low inflation with maximum 5.5. percent by the end of 2000, Economy Minister Goranko Fizulic said. Thanks to the proposed solutions Croatia is one of few countries to have m
ZAGREB, Sept 28 (Hina) - Croatia's Government on Thursday forwarded
into a parliamentary procedure a draft act on changes in excise
duties on petroleum products, under which those duties will be cut
by 60 lipa per litre for petrol and diesel so that retail prices of
those products should not be altered.
According to the proposals the Government adopted on Thursday's
session, the so-called blue petrol for farmers and fishermen, which
is sold them at a lower price than usual, will be available at petrol
stations in the future.
Deputy Finance Minister Damir Kustrak emphasised that the cut in
excise duties implied that Croatia would in no way face a rise in
inflation by the end of this year. Thus, the country remains in a
zone of low inflation with maximum 5.5. percent by the end of 2000,
Economy Minister Goranko Fizulic said.
Thanks to the proposed solutions Croatia is one of few countries to
have managed to avoid the current oil crisis.
Considering the fact that prices of crude oil have sky-rocketed on
the world markets, the Croatian Government announced last week the
reduction in excise duties to help the country's oil industry 'INA'
and to prevent a rise in retail prices of petroleum products.
Under the draft act, the excise duty for the super petrol (MB-98)
other leaded kinds will fall from the current 3.50 kuna per litre to
2.90, while the duty for lead-free petrol will drop from three kuna
to 2.40 kuna, and diesel will have a decrease from 2.10 to 1.50 kuna
per litre.
Deputy Finance Minister Kustrak explained that this reduction put
Croatia among European countries with the lowest portion of tax in
prices of petroleum products (for instance this portion in diesel
accounts for 47 percent and for 55 percent in the price of lead-free
petrol).
The cut in excise taxes which will take effect eight days after the
publishing of amendments by the national gazette "Narodne Novine",
means that the revenue in the state budget will be by 98 million kuna
smaller per month and by the end of this year the budget is likely to
lose some 250 million kuna, Kustrak added.
A discussion was stirred up by a decision that 200,000 kuna be
earmarked from the current budgetary reserves for the financial
support for the construction of a kindergarten in the municipality
of Djulovac (some 60 kilometres east of Zagreb, Bjelovar-Bilogora
County). This is one of the poorest municipalities in the country
with a great number of Croat settlers who arrived from Kosovo in
recent years.
During the debate it was cautioned that this example could
stimulate other municipalities to ask for the help in the same
manner. Some proposed that an analysis of the pre-school
institutions in the entire country should first made. Premier Racan
then reminded them of a television report which showed some
instances of racist treatment of Romany children and stressed that
the Government could not accept it.
(US dollar is approximately 8.4 kuna)
(hina) ms