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Ruling parties criticise SDP's proposal to exempt public TV network from VAT

ZAGREB, May 24 (Hina) - The Social Democratic Party's (SDP) proposal toexempt Croatian Radio Television (HRT) from paying VAT met withopposition from the ruling majority in the parliament, which stronglycriticised Croatian Television's (HTV) news department.
ZAGREB, May 24 (Hina) - The Social Democratic Party's (SDP) proposal to exempt Croatian Radio Television (HRT) from paying VAT met with opposition from the ruling majority in the parliament, which strongly criticised Croatian Television's (HTV) news department.

In a debate on changes to the Law on VAT, Andrija Hebrang of the Croatian Democratic Union (HDZ) said that HTV was less and less performing its public function.

The information provided is politically and ideologically motivated, Hebrang said, citing as an example yesterday's "Latinica" political program which was dedicated to "yugonostalgia".

HTV has gone beyond the framework of a public institution and entered market competition, prompting independent TV networks to join forces and make it respect the time limit for advertisements that is defined by the law, Hebrang said.

He criticised the HRT management for conducting business uneconomically and for avoiding obligations towards the state.

Hebrang's remarks provoked a series of rebuttals from SDP deputies.

The parliamentary parties were also divided over the introduction of zero VAT rate for newspapers, children's goods and de-mining.

While the opposition claims that zero VAT rates would reduce differences in the living standards of citizens and improve access to information, the ruling parties stressed the need to preserve the tax system and warned that introducing the proposed zero VAT rates would be followed by more requests for such rates for other categories of tax payers.

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