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RACAN: GOVT. HAS REACHED AGREEMENT ON TAX BENEFITS

ZAGREB, Oct 29 (Hina) - The government has reached an agreement on proposed tax benefits, and only some details are being perfected, Croatian Prime Minister Ivica Racan said after a meeting with the leaders of the ruling coalition.
ZAGREB, Oct 29 (Hina) - The government has reached an agreement on proposed tax benefits, and only some details are being perfected, Croatian Prime Minister Ivica Racan said after a meeting with the leaders of the ruling coalition. #L# The PM said that some differences in ministers' statements about tax benefits were exaggerated. Racan and coalition partners today reached an agreement on tax benefits, budgetary revision for this year, and a draft budget for next year. These topics will be discussed at an extraordinary government session on Wednesday. Racan said that tomorrow's session, as well as the regular government session on Thursday were very important because decisions about government's strategic measures would be made then. The coalition partners also discussed changes to the Law on Income Tax and the Penal Code. The prime minister confirmed that the government was preparing a law on one-off taxation of extra profit, adding that this was one of the obligations from its programme. The PM did not speak in detail about the law itself, but he mentioned that the state had the obligation to force those who participated in privatisation and failed to pay taxes to pay them in the form of "penalty rates". The law would not refer only to those who participated in privatisation, but to other citizens as well. Racan said that the government was working seriously on the reform of the Armed Forces and that all redundant employees would be provided for. (hina) rml sb

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