LOWER HOUSE ENDS DISCUSSION ON BILLS ON SPECIAL TAXES

( Editorial: --> 7571 ) ZAGREB, 11 Dec (Hina) - The Parliament House of Representatives on Thursday closed its discussion on four bills on special taxes. Assistant Finance Minister Mate Perkovic said changes to the Law on Beer Tax were aimed at decreasing the expenditure tax on imported beer from 120 to 80 kuna per hectolitre, that is, making it equal to the expenditure tax on domestic beer. The Government also proposed that expenditure taxes on domestic and foreign non-alcoholic drinks be equalised to the rate of 40 kuna per hectolitre. The current expenditure tax per one hectolitre of imported non- alcoholic drink amounts to 80 kuna. According to the bill on special taxes for personal vehicles, other motor vehicles, vessels and aircraft, the expenditure tax would be paid for all personal vehicles whose engine power exceeds 55 Kw and which are imported or produced and sold on the territory of Croatia. The current expenditure tax is paid for vehicles which have engine power of more than 75 Kw. According to the bill, expenditure taxes would be paid for vessels which are longer than five metres, and for motor bikes whose engine power exceeds six Kw, as well as for used cars which are imported in Croatia for the first time and whose engine power exceeds 55 Kw. According to the bill on special taxes on coffee, coffee cannot be sold in the open any more. The Committee for Finance and State Budget supported the bills. However, Ivan Kolak of the Committee asked the Government to protect domestic producers of beer and non-alcoholic drinks through customs regulations and measures. The discussion stressed the need for the protection of domestic production. "Let us stimulate domestic production through taxes and customs duties and become equal with Europe," said Josko Kovac of the Croatian Peasants' Party (HSS). Several representatives proposed that vessels of up to eight metres in length be exempted from taxation. Vessels of up to eight metres in length are very important for people who live by the sea and engage in fishing, MPs said. Assistant Finance Minister Perkovic said the expenditure tax on vehicles over 55Kw would not include the majority of mid-range vehicles. Perkovic announced bills on expenditure taxes on alcoholic drinks, tobacco and tobacco products, as well as oil and oil derivatives, for the first half of next year. (hina) mm rm 111343 MET dec 97