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Parliament imposes eco tax on cars

ZAGREB, Jan 25 (Hina) - Parliament on Friday passed a law on a special tax on motor vehicles under which, as of July 1, vehicle taxes will be tied to environmental protection and carbon dioxide emissions.

The so-called ecological tax will be based on a vehicle's purchase price and CO2 emission, which means that the prices of cars emitting less than 100g/km CO2 will drop significantly, the prices of those emitting 120-130g/km CO2 will stay the same or slightly go down, while the prices of those emitting over 130g/km CO2 will go up significantly.

Parliament also passed a new excise tax law under which, as of July 1, when Croatia is scheduled to join the European Union, excise taxes on alcoholic beverages, tobacco products, motor fuels, coal, gas and electricity will be aligned with the EU, with cigarette prices expected to go up considerably.

Although Croatia has had no excise taxes on electricity, coal and natural gas so far, the government says household prices will not go up.

Parliament passed laws on open investment funds and alternative investment funds, and amended the law on housing savings, cutting the government's incentives for a depositor to HRK 500 in one calendar year, down from 15 to 10 per cent.

MPs also ratified the statute of the national broadcaster HRT.

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