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SABOR STARTS DEBATE ON FINANCING UNITS OF LOCAL SELF-GOVERNMENT

ZAGREB, Dec 4 (Hina) - The Croatian parliament on Wednesday morning started a debate on changes to the Law on the Financing of Units of Regional and Local Self-Government, which was forwarded into urgent procedure and which envisages increasing the amount of income tax revenues which are allocated to units of local and regional self-government.
ZAGREB, Dec 4 (Hina) - The Croatian parliament on Wednesday morning started a debate on changes to the Law on the Financing of Units of Regional and Local Self-Government, which was forwarded into urgent procedure and which envisages increasing the amount of income tax revenues which are allocated to units of local and regional self-government. #L# The proposed changes would compensate for decreased income tax revenues in county and municipal budgets caused by changes to the Law on Income Tax Revenues, which are also in parliamentary procedure and which envisage the increase of the non-taxable part of income and introduce a set of tax benefits. Deputy Finance Minister Damir Kustrak said that under the bill tax income revenues that are allocated to counties should increase from eight to ten percent while those allocated to towns and municipalities should rise from 32 to 34% (i.e. 35% if the municipalities have fire-fighting departments). The parliament this morning adopted a report by the credentials and privileges commission ending the mandate of MP Stjepan Dehin of the Croatian Peasants' Party (HSS) and reinstating MP Zdenko Haramija of the HSS following the suspension of his mandate. The parliament adopted a bill on changes to the Law on Health Insurance and sent a proposal on the establishment of a fund for environmental protection and power saving into third reading. The MPs also adopted the Analysis of the State Portfolio for 2001, with information on privatisation results by October 2002, an assessment of the performance of the members of supervisory boards in state-owned companies, and an operational privatisation plan. (hina) rml

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