Slovak government proposes to raise cigarette tax

[Robert Weissman <rob@essential.org>]

Slovak government proposes to raise cigarette tax
Date: Wednesday, 6/2/99

BRATISLAVA, June 2 (Reuters) - The Slovak government approved a proposal
to raise consumption tax on cigarettes and tobacco to boost budget
revenues, government spokeswoman Miriam Fitmova said on Wednesday.

``These measures are expected to increase proceeds from consumption taxes
in 1999 by some 400 million crowns ($9.2 million), assuming the law goes
into effect on July 1 and the level of consumption remains the same,''
Fitmova told reporters.

The measures will raise the price of a packet of 20 cigarettes by between
one and two crowns.

The measure comes as part of a larger government package to increase
budget revenues and cut expenditure, aimed at meeting the fiscal deficit
target of two percent of gross domestic product.

On Monday the government approved an increase in the lower level of value
added tax to 10 percent from the current six percent and imposed a seven
percent import surcharge.

The tax increase has to be approved by the Slovak parliament, in which the
governing coalition holds 93 out of 150 seats.

($1-43.7 crowns)

((Peter Javurek, Bratislava Newsroom, 421-7-5341-8402, fax
421-7-5341-8403, bratislava.newsroom+reuters.com))