ZAGREB, Jan 9 (Hina) - The Croatian Association of Employers (HUP) hails every initiative and measure aimed at cutting taxes and easing the burden on the economy, but it maintains that it would be good to consider also a model of
differentiated rates of the Value Added Tax, as similar models exist in a majority of countries, the HUP director general, Bernard Jakelic, said on Friday.
ZAGREB, Jan 9 (Hina) - The Croatian Association of Employers (HUP)
hails every initiative and measure aimed at cutting taxes and easing
the burden on the economy, but it maintains that it would be good to
consider also a model of differentiated rates of the Value Added Tax,
as similar models exist in a majority of countries, the HUP director
general, Bernard Jakelic, said on Friday.#L#
Jakelic believes that the proposal of the new government that
22-percent VAT should be cut by two percent will not considerably
change retail prices. Neither consumers nor traders will feel greater
effects of 20-percent VAT, he said commenting on the HDZ-led
government's motion for the introduction of 20-percent VAT as of 1
January 2005. This move may produce stronger effects probably only in
bigger transactions and the purchase of flats or more valuable goods.
The employers' representative is in favour of differentiated rates of
VAT, or at least a lower rate for the agricultural and food-producing
sector.
(Hina) ms sb