Finance Minister Ivan Šuker reiterated today that from the beginning of 2009, the harmonization of excise duties on cigarettes will commence in accordance with the remarks of the European Commission, which state that the current system of excise duties is not in line with the Stabilization and Association Agreement.
The harmonization will be carried out in two steps – the first, amounting to 50 percent, will take effect from January 1, 2009, to which an additional 5 kuna is to be added as part of the healthcare system reform. The second 50 percent of the adjustment is expected to be implemented from January 1, 2010, said Šuker.
Upon completion of this process, excise duties on cigarettes will have a nominal and percentage component that will depend on the price level. As he stated, the calculations of the excise duties are still being made, and the final prices of cigarettes with excise duties will also depend on the manufacturers. (Hina)
