The system of taxation of cigarettes and the amount and structure of excise duty have a significant impact on consumption. Excise duties are generally introduced for revenue collection, correcting negative externalities and reducing consumption. In order to harmonize the tax systems of the member states, the EU has issued several Directives on excise duties. Croatia is obliged to align its legislation with those Directives, through gradual adjustment until 2017. This will influence the growth of both cigarette prices and budget revenue. Besides the amount of the excise duty, its structure greatly affects the budgetary income from this revenue source. Anto Bajo and Marko Primorac have tried to determine The structure of excise duties on cigarettes in the Republic of Croatia and the EU member states and the impact of structural changes in excise duties on cigarette prices in the new Newsletter.

In the June issue of the journal Financial Theory and Practice you can read the article by Alan Bobetko, Mirna Dumicic and Josip Funda Fiscal determinants of government borrowing costs: do we have only ourselves to blame? on the factors that determine the dynamics of government bond spreads in the chosen European countries and the German government bond by employing dynamic panel data method. In the article The effect of political institutions on the size of government spending in European Union member states and Croatia Valentina Vučković and Martina Basarac Sertić present an overview of theoretical and empirical research on the interaction between political institutions and economic variables and econometric analysis of the indirect effects of electoral systems on the size of general government spending. The results of the research show that a higher degree of government fragmentation leads to an increase in government spending. Whether the suspicious transactions are a reliable criteria of the quality of the risk assessment system, you can read in the article Money laundering: correlation between risk assessment and suspicious transactions by Sonja Cindori. The author has made a statistical analysis of several countries of Western and Northern Europe and analysed the contribution of suspicious transactions to the quality of the risk assessment system. Rajeev K. Goel in the article Initiation of corrupt exchanges and severity of corruption investigates the effectiveness of corruption control, depending upon whether the bribe taker or the bribe giver initiates the corrupt interaction. The probability of corrupt exchanges depends upon the bribe and the corrupt market structure. Results show that the effectiveness of apprehension hinges on whether higher bribes invite harsher fines. Hrvoje Šimović reviews the book Financiranje velikih gradova by Tereza Rogić Lugarić.

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