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CROATIAN EMPLOYERS CRITICISE 2003 DRAFT BUDGET

VINKOVCI/ZAGREB, Nov 12 (Hina) - The Croatian Employers' Association (HUP) expressed several objections and remarks to a draft state budget for 2003. One of major objections is that the budget seems to be affected by the political relations in the ruling coalition.
VINKOVCI/ZAGREB, Nov 12 (Hina) - The Croatian Employers' Association (HUP) expressed several objections and remarks to a draft state budget for 2003. One of major objections is that the budget seems to be affected by the political relations in the ruling coalition. #L# At a news conference he held in the eastern town of Vinkovci, the HUP chief, Zeljko Ivancevic on Tuesday said employers were concerned over a strong growth of means to be allocated for subsidies, which were presented as the strengthening of the developing components of the budget, but for the HEP it was questionable. The announced changes in the tax policy diminish the simplicity and transparency of the system and increase costs of the tax administration. The tax policy is being often changed, which leads to uncertain conditions for activities of business people, he said. An increasing number of tax relief and exemptions disrupt the equality for conditions for business activities, and are unfavourable for the entrepreneurial climate. As a result, in long run this will cause smaller rates of the economic growth, Ivancevic explained. (hina) ms sb

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