ZAGREB, June 18 (Hina) - The Croatian National Sabor's House of Representatives on Friday discussed a bill on changes to the law on special taxes on petroleum products. Josko Kontic of the Croatian Social Liberal Party (HSLS) said
that the bill was only an "overture" to an increase of petroleum products' prices. According to Kontic, this increase could influence an increase in prices of other products as well. Other representatives of opposition parties agreed with Kontic. The opposition opposed the bill and the increase of expenditure tax on petroleum products. The HSLS, the Croatian Peasants' Party (HSS), and the Social Democratic Party (SDP) assessed the bill as unacceptable and said it was still unclear whether higher expenditure tax on petroleum products would affect the increase in gas retail prices. Dragica Zgrebec of the SDP reminded that Croatian oil company INA had already announc
ZAGREB, June 18 (Hina) - The Croatian National Sabor's House of
Representatives on Friday discussed a bill on changes to the law on
special taxes on petroleum products.
Josko Kontic of the Croatian Social Liberal Party (HSLS) said that
the bill was only an "overture" to an increase of petroleum
products' prices.
According to Kontic, this increase could influence an increase in
prices of other products as well.
Other representatives of opposition parties agreed with Kontic.
The opposition opposed the bill and the increase of expenditure tax
on petroleum products.
The HSLS, the Croatian Peasants' Party (HSS), and the Social
Democratic Party (SDP) assessed the bill as unacceptable and said
it was still unclear whether higher expenditure tax on petroleum
products would affect the increase in gas retail prices.
Dragica Zgrebec of the SDP reminded that Croatian oil company INA
had already announced an increase in gas prices, justifying this
with prices on the international market.
According to Sabor's representatives, also lacking was the
simulation of effects of the increase in petroleum products' prices
on other products. Prices of many petroleum products are expected
to increase as well, Marin Jurjevic of the SDP said.
The increase in gas prices has an impact on everything else, from
transport to any kind of production, Juraj Biscan of the HSS said.
He stressed this was not a solution to Croatia's economic
difficulties, adding that it was not the time to increase prices.
Biscan and Zeljko Pavlic of the HSLS believe that economic problems
should be solved by stimulation, and not by new taxes.
Both the Opposition and the ruling Croatian Democratic Union (HDZ)
strongly objected to the Government for not adopting motions which
would allow farming machinery and fishing-boats to use heating-
oil.
The representatives could also not accept the Government's
explanation that the bill on special taxes on petroleum products
was aimed at adjusting Croatia's taxes on petroleum products with
those in neighbouring countries.
Kontic said this would make sense if other things were also
adjusted, such as taxes on salaries, contribution rates for pension
and health insurance, or the Value Added Tax rate which he said is
one of the highest in Europe.
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