Prices will rise with new taxes

Public expenses for the first five months of 1999 have risen 81.5% according to budget figures, while public income has risen 49% . The rise on tax income, on the other hand, have stalled at 48.8%. If this is to continue, a budget deficit at the end of 1999 will be inevitable.
While struggling with the dramatic gaps in the budget, the government is concentrating on tax reforms that target higher income figures. In this case, the "Private Consumption Tax" (OTV), is being considered as a possible solution to boost income. In spite of having been presented to the Parliament several times in the past, the bill about the Tax has not passed so far.
Those responsible of the Tax will be the importers and the producers of various products included in the bill. It is somewhat similar to the Value Added Tax, in that it obliges producers to pay tax on delivery and importers at customs. The draft includes a list of al the products liable to the tax and their varying rates. The two main types of products included are those considered as luxurious consumption (fur, caviar, alcoholic beverages, cosmetics, etc.), and those the import of which is to be discouraged in order to protect the local market (household furniture, automobiles,etc.).