CROATIAN PARLIAMENT HOUSE OF COUNTIES DISCUSSES EXPENDITURE TAX

ZAGREB, April 21 (Hina) - Ending a discussion of bills on special taxes on oil products, cars and luxury products, the Croatian Parliament House of Counties ended this week's work. The Upper House will vote on the bills next week when it continues the session. Besides the mentioned bills, MPs also discussed the bill on customs tariffs. MPs harshly criticised the Government suggestion to increase expenditure tax for oil products, cars and other motor vehicles. Representatives of opposition parties and the ruling party were interested in whether a change to the special tax on oil products would increase the price of petrol, and indirectly, a number of other goods and the price of living. An increase in taxes does not have to mean an increase in prices, the state has instruments to regulate the retail price of petrol, Tax Administration director Mate Perkovic said. MPs also expressed their dissatisfaction with the planned increase in taxes for categories of cars between 75 to 90 KW, stressing these cars were the most common. They warned an increase in taxes could lead to an increasing number of old cars on Croatian roads, thus jeopardising traffic safety. The Government for the first time motioned the introduction of expenditure taxes for luxury products, of 20 per cent of their value before Value Added Tax. The House of Counties adopted a customs bill which should urgently simplify customs proceedings. (hina) lml