ZAGREB, Jan 28(Hina) - Prime Minister Ivo Sanader in parliament on Wednesday expressed conviction that the proposed reduction of Value Added Tax would directly influence the standard of Croatian citizens and called on shopkeepers to
show solidarity and lower prices.
ZAGREB, Jan 28(Hina) - Prime Minister Ivo Sanader in parliament on
Wednesday expressed conviction that the proposed reduction of Value
Added Tax would directly influence the standard of Croatian citizens
and called on shopkeepers to show solidarity and lower prices.#L#
Presenting the government-sponsored bill of amendments to the VAT Law
which envisages the reduction of 22 percent VAT to 20 percent as of
January 1, 2005, Sanader said he was aware that prices did not need to
be lowered together with the reduction of VAT, but added, however,
that "the government doesn't want to develop wild capitalism, but
increase social awareness about solidarity".
"Let this be a joint enterprise. Shopkeepers should also reduce profit
margins by two percent. Let this four percent help the growth of the
standard of living of Croatian citizens," Sanader called on
shopkeepers.
He stressed he was aware of the risk for the state budget, but added
that lower income would be substituted by an increased supervision of
the use of natural resources and public companies and the reduction of
grey economy
He said stricter discipline would be imposed regarding the managing of
public finances. He also announced reductions in the state
administration -- from ministries to local self-government.
The PM explained that the introduction of the lower VAT rate was
postponed until the beginning of next year in order to prepare the
state administration for the new measure.
(Hina) it