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GOVERNMENT SAYS 100,000 PEOPLE ARE EMPLOYED ILLEGALLY

ZAGREB, Nov 25 (Hina) - About 100,000 people in Croatia are illegallyemployed, which costs the state about seven billion kuna annually,Deputy Prime Minister Andrija Hebrang said at a session of theGovernment on Thursday which adopted measures aimed at combating thegrey economy.
ZAGREB, Nov 25 (Hina) - About 100,000 people in Croatia are illegally employed, which costs the state about seven billion kuna annually, Deputy Prime Minister Andrija Hebrang said at a session of the Government on Thursday which adopted measures aimed at combating the grey economy.

The enforcement of the measures is expected to be helped by the Financial Police. The Government today drafted a bill on its re-establishment.

According to Finance Minister Ivan Suker, the Financial Police should be a small, highly operational body whose main tasks would include the control and collection of excise taxes, the control of pretaxes, and the collection of concession fees.

It is estimated that the Financial Police will need 38 million kuna in 2005.

Among the Government measures against the grey economy, the ministers highlighted the need to process offence and criminal charges faster and more efficiently.

Hebrang said that last year, only 1,166 of a total of 6,288 offence charges were processed, while 759 cases were discontinued due to the statute of limitations.

Also today, the Government discussed entrepreneurial zones, saying that local communities had invested 716 million kuna in them so far, while another 2.5 billion was required for their completion.

(EUR1 = 7.6 kuna)

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