SABOR DISCUSSES TWO PROPOSALS FOR CHANGES TO INCOME TAX LAW

ZAGREB, March 26 (Hina) - The Croatian parliament began its session on Friday with a debate on two bills of amendments to the law on income tax, one moved by the Social Democratic Party (SDP) and the other by the clubs of deputies of the Croatian People's Party/Primorje Gorski Kotar Alliance (HNS/PGS) and the Libra party.#L# The proposal of the SDP envisages the introduction of tax facilities for the purchase of personal computers, PC components and software and courses in foreign languages and informatics. Nenad Stazic of the SDP told parliament that according to statistics, the average Croat spent only 150 kuna for his/her education annually, and that only 18 percent of the population in the country used the Internet, which he described as insufficient to meet the requests for the literacy in the 21st century. The proposal of the HNS/PGS and Libra envisages the increase of the current non-taxable income of 1,500 kuna to 2,000 kuna which would lead to a four percent increase in salaries. Radimir Cacic of the HNS said that this measure on higher non-taxable income would help the average family to save 212 kuna monthly. The government, however, gave a negative opinion on both bills. During a parliamentary debate on the issue, the ruling Croatian Democratic Union (HDZ) also voiced disagreement with the two bills, Zeljko Pecek of the Croatian Peasant Party (HSS) proposed the gradual increase of the nontaxable income, namely by 250 kuna this year, and by another 250 kuna in the next year. Pero Kovacevic of the Croatian Party of Rights (HSP) supported the bills welcoming them as a contribution to the reform of the entire tax system. He added that only stricter financial and tax discipline could help improve standard and lead to creation of more jobs. A delegation of the Hungarian parliament, led by the parliament chairwoman, Katalin Szili, arrived in the Sabor on Friday. (Hina) ms