RIJEKA, Jan 8 (Hina) - An Istrian Democratic Assembly (IDS) MP, Damir Kajin, on Thursday accused the ruling Croatian Democratic Union (HDZ) of deceiving voters by postponing the implementation of a lower Value Added Tax for one
year.
RIJEKA, Jan 8 (Hina) - An Istrian Democratic Assembly (IDS) MP, Damir
Kajin, on Thursday accused the ruling Croatian Democratic Union (HDZ)
of deceiving voters by postponing the implementation of a lower Value
Added Tax for one year.#L#
Kajin told a news conference in the seaport of Rijeka that the new
government had so far only reduced the number of ministries while at
the same time increasing the number of state officials.
The IDS is for the immediate reduction of the VAT, in compliance with
promises the HDZ gave before the elections, Kajin said.
He went on to say that consumers would feel benefits from a lower VAT
to a small extent, the government would be negatively affected and
those who would benefit from the cut of the current 22-percent VAT to
20 percent would be importers.
The IDS parliamentarian believes that it would be better to introduce
the zero-rate of the VAT for a higher number of products and 10- or
11-percent rates for catering and tourist services instead of an
overall reduction.
He added that the HDZ would face the problem of paying back 17 billion
kuna of the foreign debt and therefore it would resort to the sale of
Croatia's property on a mass scale.
Kajin said that by taking over the power, the HDZ had been very well
aware of the situation in the state and public finance and that was
why it should now stop shifting responsibility to those who were
stepping down.
(Hina) ms sb