A portion of excise taxes relating to EU harmonised excise duties, notably excise taxes imposed by the EU on member-countries, will be changed for the purpose of harmonisation with the EU acquis, while excise taxes outside the harmonisation plan will be changed by Croatia for the sake of the country's interests so that more goods may be bought at home than abroad, the minister said.

One of the biggest changes will be the introduction of excise taxes on natural gas, electricity, coal and coke.

Assistant customs chief Mario Demirovic said that the Finance Ministry would propose the lowest rates of this tax with a series of exemptions so that excise duties would not be paid for natural gas and electricity used by households.

Blue-dyed fuel, used by farmers and fishermen, will also be exempt from the excise tax.

The Finance Ministry announced higher excise duties on tobacco products, while excise duties on coffee and beverages would be lowered as part of changes in the excise taxation system.

Excise taxes on luxurious goods will be annulled as of the new year.

The new excise taxation legislation is to become effective as of 1 July 2013 when Croatia is due to enter the EU. On the same day, laws on special taxes on motor vehicles and on coffee and nonalcoholic drinks should also take effect.

The new law regulating taxes on motor vehicles will treat carbon dioxide emissions as a criterion for taxation, as a result of which it will be more favourable to buy smaller, new and more environmentally friendly cars. Therefore, this trend will reduce the import of old used cars from Europe.