The government is introducing a single revenue service after Croatia entered the EU as the last of Slovenia's neighbours, making all of the country's land borders internal borders of the EU.

The main task of the new Financial Administration is to be the collection of taxes and duties, as part of which many former customs officials will now perform the tasks of tax officials.

The government estimates costs of nearly EUR 1m associated with the merger, but in turn expects lasting savings that will far outweigh the costs, as well as increased revenues stemming from better tax collection.

The merger of the two administrations was already proposed by the previous government in the spring, but the bill was withdrawn after the cabinet shift over protests from trade unions.

Talks with social partners on the proposal resumed in October after a new proposal was presented.