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PARLIAMENT DISCUSSES NOVELTIES IN FOREIGN EXCHANGE OPERATIONS

ZAGREB, Nov 21 (Hina) - All party benches on Thursday backed a government's bill on foreign exchange transactions in its first reading, with minor disapproval, describing it as an important step in approaching the European Union.
ZAGREB, Nov 21 (Hina) - All party benches on Thursday backed a government's bill on foreign exchange transactions in its first reading, with minor disapproval, describing it as an important step in approaching the European Union. #L# The draft law is aimed at harmonising the regulation of the liberalisation of capital transfers to guidelines of the European Union, thus cinching large foreign investments in Croatia. According to the draft, Croatian citizens will be able to acquire companies, stock and bonds in foreign companies. The current limit of foreign exchange currency of 3,000 German marks which could be transferred over the border would increase to 3,000 euros. The parliament also discussed the Law on Income Tax. Moved amendments to this law, with some criticism, were adopted by the ruling coalition's Social Democratic Party, Croatian Peasants Party and Libra, because they believe that the aim of the amendments is to decrease taxes to the benefit of the taxpayers, which will result in an increase in salaries. All opposition parliamentary parties, as well as Libra, appraised that too frequent changes to taxes were not good for the business climate in Croatia, since they rendered the tax system unstable for foreign investors. (hina) lml sb

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