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CROATIA: Excise Hike on Tobacco Fails To Produce Expected Fiscal Effect in 2004 |
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2005-02-01 11:25:20 |
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The introduced excise duty hike on tobacco products failed to produce the desired effect, daily Jutarnji list reported. The revenues from this type of excises amounted to HRK 2.43bn in 2004 growing by 3.8% y/y.
When presenting the increase proposal, finance minister Ivan Suker said the effect on the budget revenues was to be significant and the additional revenues should reach at least HRK 440mn annually. Given that the hike was introduced in mid-year, the effect on the budget was to be around HRK 200mn while in fact revenues increased by HRK 90mn.
The ministry attributed the results to the black market effects and voiced hope that the establishment of financial police would boost reduce illegal production and trade.
Source: Terna Information Services
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