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SANADER PROMISES REDUCTION OF VAT RATE

ZAGREB, Nov 20 (Hina) - The leader of the Croatian Democratic Union (HDZ), Ivo Sanader, has stated that the new government, which will most probably be formed by his party, will reduce the current VAT rate of 22 percent to 20 percent.
ZAGREB, Nov 20 (Hina) - The leader of the Croatian Democratic Union (HDZ), Ivo Sanader, has stated that the new government, which will most probably be formed by his party, will reduce the current VAT rate of 22 percent to 20 percent. #L# The reduction of VAT revenue can be made up for by cutting down the number of ministries, introducing more order in public finances, eliminating grey economy and by other measures, Sanader said at a news conference on Thursday. Speaking about relations with neighbouring countries, he said they were one of the priorities of foreign policy. Commenting on the case of runaway general Ante Gotovina, Sanader said that his party, as part of the opposition, did not know what was going on "behind the scenes", but that it did know that "there are some contacts between the President's Office, General Gotovina, and the Prosecutor's Office of the tribunal in The Hague". If the HDZ comes to power, it will establish contact with the President's Office and the Prosecution in The Hague to see how the case can be solved, Sanader said. He dismissed an article in the Feral Tribune weekly saying that he had spent some 40,000 kuna for representation while using the official credit card of the Foreign Ministry at the time when he was at the post of Deputy Foreign Minister. (hina) rml sb

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