UNIONS THREATEN TO LEAVE GSV BECAUSE THEY WEREN'T INFORMED ABOUT TAX BENEFITS

ZAGREB, Oct 26 (Hina) - Union leaders have threatened to leave the Economic-Social Council (GSV) because the government failed to consult them while drawing up the latest tax benefits. We have been dissatisfied with our dialogue with the government for some time, but now we are considering more radical moves, including leaving the GSV, said the president of the Federation of Independent Trade Unions of Croatia (SSSH), Davor Juric. The Finance Ministry yesterday suggested that the non-taxable part of the salary be increased from 1,250 to 1,500 kuna, and that a set of tax benefits decreasing the tax base be introduced. Juric claims that the government ignored the unions in the adoption of the latest system of electricity tariffs and all more important laws and regulations concerning living standards as well. The head of the Independent Croatian Trade Unions (NHS), Kresimir Sever, agreed with Juric, claiming that he learned of the tax benefits from the press. Nevertheless, both union leaders in principle supported the government's proposal for increasing the non-taxable part of the salary and other benefits. Juric said this could lead to a four-percent increase in salaries, which he believes is good considering the economic situation. More detailed estimates will be available after SSSH experts analyse the proposed measures, he said. Government officials, employers and unions will discuss the latest government measures at a session of the GSV on Tuesday, October 29. (hina) rml