ZAGREB, April 22 (Hina) - A proposal of the Croatian Government to increase expenditure taxes on petroleum and tobacco products and to impose expenditure taxes on luxury goods was described by opposition MPs as attempts to "patch the
state budget." The proposal to increase such taxes on the petroleum products prompted severe objections during Thursday's session of the Croatian National Parliament's House of Representatives. The opposition warned that such a move might lead to a rise in prices of the petrol and thus of other products and generate inflation. Deputies of the Croatian Peasants' Party (HSS) and the Istrian Democratic Alliance (IDS) demanded that fishermen and farmers be allowed to buy cheaper heating oil for their equipment and machines. The suggestion was supported by the ruling Croatian Democratic Union's (HDZ) member, Vladimir Seks. The proposal to increase expenditure taxes was endor
ZAGREB, April 22 (Hina) - A proposal of the Croatian Government to
increase expenditure taxes on petroleum and tobacco products and to
impose expenditure taxes on luxury goods was described by
opposition MPs as attempts to "patch the state budget."
The proposal to increase such taxes on the petroleum products
prompted severe objections during Thursday's session of the
Croatian National Parliament's House of Representatives. The
opposition warned that such a move might lead to a rise in prices of
the petrol and thus of other products and generate inflation.
Deputies of the Croatian Peasants' Party (HSS) and the Istrian
Democratic Alliance (IDS) demanded that fishermen and farmers be
allowed to buy cheaper heating oil for their equipment and
machines. The suggestion was supported by the ruling Croatian
Democratic Union's (HDZ) member, Vladimir Seks.
The proposal to increase expenditure taxes was endorsed by HDZ
members who explained that prices should be in line with needs of
the state and plans for the construction of roads.
The bill envisages the increase of a special tax on petrol from
US$0.27 to 0.29 per litre. It also envisages an increase in
the price of lead- free petrol from US$0.23 to 0.26 per litre and for
diesel from US$0.20 to US$0.23. Additional 5 to 6 million US dollars
may be poured into the budget monthly in this way.
Amendments to the act on the special taxes on tobacco products,
which are in compliance with demands by the World Trade
Organisation (WTO), provide a rise in expenditure taxes for
domestic cigarettes. This may ensure 2.86 million dollars to the
budget.
Members of the lower house warned that the domestic growing of
tobacco which employed more than 3,000 households should be better
protected. The HSS added that not only taxes but also conditions of
production should be adjusted to circumstances in other countries
in this area of agriculture.
(hina) jn ms