Statement of the Finance minister, Igor Lukšić, on determining draft Law on amendments and addendums to the Tax fee law

Advised amendments and addendums to Tax fee law adopted by the Government, plans gradual increase of cigarette prices, hence by the end of 2009 there will be an increase of 10 to 19 Cents. The Law plans to increase specific tax fees from one Euro to five Euros, and proportional fees from 26% to 35%. In order to compensate for such an increase, we have suggested application of a mid-term solution for the following year, according to which specific tax fee would be 3 Euros per 1,000 units, i.e. 30% of the retail price. For premium petrol, tax fee will remain at the same level, while for the unleaded it is reduced from 364 to 359 Euros per the appropriate measurement unit, while in other categories certain corrections have been made. We expect this law will swiftly enter parliamentary procedure and will receive support, bearing in mind that its main goal is adjustment according to the demands and regulations in the EU.