Finance Minister Slavko Linic said the alignment of excise taxes on alcohol, motor fuels, coal, gas and electricity would not result in a significant increase of prices, except for tobacco and tobacco products.
The increase of excise taxes on tobacco products will take place in three stages, the first by July 1, the second staring in early 2014 and the third towards the end of 2017. Linic said how much cigarette prices would go up would depend on how much manufacturers wanted to lower their margins.
Excise taxes will not be imposed on wine, champagne and beer.
Croatia had no excise taxes on electricity, coal and natural gas so far, so many changes need to be implemented. Since the EU envisages exemptions, Linic said the government exempted households from the excise system.
He said the increase for the industry would be between one and two per cent and that it was not expected to impact prices or business.