ZAGREB, Jan 28(Hina) - Prime Minister Ivo Sanader on Wednesday refuted accusations by the opposition that his government failed to meet a promise it had made to the citizens during the election campaign because it postponed the
introduction of a lower VAT rate for the beginning of next year.
ZAGREB, Jan 28(Hina) - Prime Minister Ivo Sanader on Wednesday refuted
accusations by the opposition that his government failed to meet a
promise it had made to the citizens during the election campaign
because it postponed the introduction of a lower VAT rate for the
beginning of next year.#L#
"We made a promise to the citizens that VAT would be reduced, this is
the beginning of our fulfilling that promise," Sanader said in a
parliamentary debate on a government-sponsored bill on the reduction
of the current 22-percent VAT rate to 20 percent, to go into force on
January 1, 2005.
Responding to criticisms by MPs of the Istrian Democratic Assembly
(IDS) and the Social Democratic Party (SDP), Sanader said they had
failed to fulfil their promise to reduce VAT to 17 percent.
The PM said that budgetary spending for road construction was exceeded
by 1.6 billion kuna and that the former government had agreed with
that in December, despite a negative opinion from the Finance
Ministry.
"Should we keep silent about this?" Sanader asked those who criticised
him.
Former Finance Minister Mato Crkvenac of the SDP said it was not fair
to insist on the exceeding of road construction and health funds that
had not been proven. He said that "blowing deficit out of proportion"
was causing great damage to Croatia.
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