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DEPUTY FINANCE MINISTER PRESENTS BILL ON CHANGES TO LAW ON LOCAL, REGIONAL SELF GOVERNMENT

ZAGREB, March 28 (Hina) - The state will give up 1.75 billion kuna to the benefit of the units of local and regional self-government so that they could finance their health, education and social care systems, Deputy Finance Minister Damir Kustrak told the House of Representatives on Wednesday. Explaining a bill on changes to the Law on the Financing of Local and Regional Self-Government, Kustrak said the bill was aimed at decentralising the state administration and strengthening local units of administration. The bill envisages increased taxes on the level of counties, such as taxes on country houses, cars and vessels, which would secure funds for the financing of local units of administration. The bill envisages the introduction of new taxes on untended farming land and unused business premises. According to the bill, municipalities and towns will be able to introduce municipal
ZAGREB, March 28 (Hina) - The state will give up 1.75 billion kuna to the benefit of the units of local and regional self-government so that they could finance their health, education and social care systems, Deputy Finance Minister Damir Kustrak told the House of Representatives on Wednesday. Explaining a bill on changes to the Law on the Financing of Local and Regional Self-Government, Kustrak said the bill was aimed at decentralising the state administration and strengthening local units of administration. The bill envisages increased taxes on the level of counties, such as taxes on country houses, cars and vessels, which would secure funds for the financing of local units of administration. The bill envisages the introduction of new taxes on untended farming land and unused business premises. According to the bill, municipalities and towns will be able to introduce municipal income taxes, which is currently allowed only to the capital of Zagreb and towns with more than 40,000 residents. The bill also envisages the establishment of a fund through which more developed areas would assist less developed ones, Kustrak said. (hina) rml

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