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CROATIAN PARLIAMENT ENDORSES STIMULATION INVESTMENT BILL

ZAGREB, Sept 19 (Hina) - Economy Minister Ljubo Jurcic on Thursday presented to the parliament a draft act on the stimulation of investments. The enforcement of this law should encourage the development of primarily the manufacturing industry, tourism and research.
ZAGREB, Sept 19 (Hina) - Economy Minister Ljubo Jurcic on Thursday presented to the parliament a draft act on the stimulation of investments. The enforcement of this law should encourage the development of primarily the manufacturing industry, tourism and research. #L# The new law should stimulate the investments aimed at the enhancement of the country's capacities through the introduction of new technology and investment into long-term assets, the minister told the Sabor. The new law does make distinction between Croatian and foreign investors. The lowest value of the investment, which might be covered by stimulating measures, was lowered to two million kuna (274,000 euros), and the tax basis rather than tax rates would be decreased, the minister said adding that the new law was fully in the function of the re-industrialisation of the Croatian economy. All the party benches, except Democratic Centre (DC), supported the draft act in the first reading. The DC does not endorse the act as its stimulating measures will not cover tradesmen and other small businesses, although they are who stimulate the creation of new jobs at a significant extent. Other MPs suggested that provisions on the stimulation of investment in trades and small businesses should be incorporated in this draft act in the further procedure. The MPs were told that Croatia had 90,000 tradesmen who employed 212,000 workers, and trades and small businesses had created 27,000 new jobs in the last two years. (hina) ms sb

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