Luxury Goods Tax In Croatia To Go

Luxury goods are set to become a lot cheaper from 1 January 2013 in Croatia, when the government abolishes the Excise Tax law on luxury goods. The government has sent in the proposal to parliament to abolish the 30 percent tax on luxury items such as jewellery, watches, clothing such as fur coats, weapons, precious metals and the like, reports Jutarnji list.

The government stated in its reasoning that the current luxury goods tax income was negligible for the budget, and that the tax had proved to be inefficient, unreasonable and inflexible. The abolishment will put Croatia in line with EU law.