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Croatia plans to raise taxes on car fuels, telecommunications to reduce budget deficit [IntelliNews - Weekly Reports](IntelliNews - Weekly Reports Via Acquire Media NewsEdge) The Croatian government allegedly plans to raise taxes on car fuels and increase fees on telecommunication firms in order to reduce the budget deficit by an additional HRK 1.3bn (EUR 171mn), daily Poslovni Dnevnik reported on April 16. According to unofficial sources, the government will increase the taxes on car fuel by HRK 0.2 (EUR 0.026) per litre, the report said. Also, the new telecommunication sector fees, which would be implemented via changing the radio frequency licence fees, will attract some HRK 300mn (EUR 39.4mn) in revenue. Croatia entered the EU's excessive deficit procedure in January and already revised once its 2014 budget. However, earlier in April, the European Commission said that the country needs to cut further the deficit by HRK 1.3bn, or by an additional 0.4% of GDP. Under the first revision, Cratia cut the deficit target to HRK 13.6bn, or 4.1% of GDP, from HRK 17.5bn, or 5.2% of GDP with a planned consolidated budget gap of 4.5% of GDP. The EU recommends the country shall reduce the deficit to 2.7% of GDP in 2016. Croatia is expected to present its planned measures for reducing the budget gap to the local public and the EU by April 30. (c) 2014 Emerging Markets Direct Media Holdings LLC Provided by Syndigate.info, an Albawaba.com company |