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Heated parliamentary debates on changes to laws on health insurance and VAT

ZAGREB, July 13 (Hina) - The Croatian parliament on Wednesday discusseddraft amendments to the law on health insurance.
ZAGREB, July 13 (Hina) - The Croatian parliament on Wednesday discussed draft amendments to the law on health insurance.

Defending the government's motion, Andrija Hebrang of the ruling Croatian Democratic Union (HDZ) said that some sacrifice was always necessary in order to ensure the survival of the entire system.

The Opposition severely criticised the government's intention to introduce administrative tariffs which should be paid for examinations by doctors.

MPs from opposition parties described it as yet another blow to the standard of citizens.

Hebrang recalled the Croatian health system was the only one in Europe to have the maximum health protection, with the state covering over 90 percent of the entire price of health services and 85 percent of drugs' prices. In addition, about three million citizens are exempt from paying participation fees.

This the only way to avoid reaching a crisis characterised by a lack of drugs and no funds for salaries of health sector employees, Hebrang told the Sabor.

The introduction of administrative tariffs means that patients will pay from five to 30 kuna per month.

Opposition MPs said that this was not a reform of the health system but a measure by the current government to collect a half billion kuna to the detriment of citizens.

Earlier in the day the Sabor also saw a heated debate on the government's motion to amend the Law on Value Added Tax.

The Ivo Sanader cabinet proposes the introduction of a 10-percent VAT on prices of accommodation of tourists and provision fees of travel agencies as of the start of 2006. The purpose of this measure is to equate tax rates for domestic and foreign tourists and foreign agencies.

Currently, the zero VAT rate is applied on organised tours by foreign tourists while Croatian holiday-makers pay 22-percent VAT on all services.

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