"Cigarette amendment, rational move"
The Alliance of Vojvodina Hungarians (SVM) leader says his party voted in favor of a controversial amendment on cigarette excise because it "seemed rational".
Sunday, 25.01.2009.
15:30
The Alliance of Vojvodina Hungarians (SVM) leader says his party voted in favor of a controversial amendment on cigarette excise because it "seemed rational". The amendment was tabled by the ruling Socialists (SPS) and passed in parliament earlier this week. "Cigarette amendment, rational move" Istvan Pastor also said on Sunday that the SVM had no intention of showing "favoritism toward some producers". "Our entire parliamentary work should go in the direction where we do not look at which party sent a proposal, but whether the proposal itself is rational," he said, adding that the amendment "made a clear distinction between domestic and imported production". "In a way," Pastor continued, "it isn't popular for the protection of domestic producers to start with cigarettes, but a more severe protection of the domestic economy is necessary at a time of the global economic crisis." For this reason, he said, "distinction must be made between the Serbia-made and imported cigarettes". Pastor also said he was "not aware who stood behind the SPS proposal", and denied that any pressure was exerted on SVM MPs to vote the way they did. On Jan. 21, lawmakers from the SPS, opposition SRS, SNS, DSS, as well as LSV and minority parties voted in favor of the amendment, which replaced equal 35 percent and RSD 11 per pack duty on all tobacco products, proposed by the government, with proportional 38 percent excise and RSD 8.92 per pack fixed duty. The SPS, LSV and the minority MPs – whose caucus includes the SVM – are all members of the broad ruling coalition. Belgrade daily Blic yesterday quoted an unnamed top government source, who claimed that the amendment passed contrary to a previous agreement reached within the coalition, and that it favors Monus cigarette factory owner Predrag Rankovic Peconi. Rankovic's plant makes the cheapest cigarettes in the market. The same source said the amendment would "cost the Serbian budget RSD 2bn". British American Tobacco and Phillip Morris operations in Serbia also protested parliament's adoption of the amendment.
"Cigarette amendment, rational move"
Ištvan Pastor also said on Sunday that the SVM had no intention of showing "favoritism toward some producers"."Our entire parliamentary work should go in the direction where we do not look at which party sent a proposal, but whether the proposal itself is rational," he said, adding that the amendment "made a clear distinction between domestic and imported production".
"In a way," Pastor continued, "it isn't popular for the protection of domestic producers to start with cigarettes, but a more severe protection of the domestic economy is necessary at a time of the global economic crisis."
For this reason, he said, "distinction must be made between the Serbia-made and imported cigarettes".
Pastor also said he was "not aware who stood behind the SPS proposal", and denied that any pressure was exerted on SVM MPs to vote the way they did.
On Jan. 21, lawmakers from the SPS, opposition SRS, SNS, DSS, as well as LSV and minority parties voted in favor of the amendment, which replaced equal 35 percent and RSD 11 per pack duty on all tobacco products, proposed by the government, with proportional 38 percent excise and RSD 8.92 per pack fixed duty.
The SPS, LSV and the minority MPs – whose caucus includes the SVM – are all members of the broad ruling coalition.
Belgrade daily Blic yesterday quoted an unnamed top government source, who claimed that the amendment passed contrary to a previous agreement reached within the coalition, and that it favors Monus cigarette factory owner Predrag Ranković Peconi. Ranković's plant makes the cheapest cigarettes in the market.
The same source said the amendment would "cost the Serbian budget RSD 2bn".
British American Tobacco and Phillip Morris operations in Serbia also protested parliament's adoption of the amendment.
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