RACAN:GOVERNMENT CONSIDERS REDUCTION OF VAT TO 19 PERCENT

ZAGREB, May 15 (Hina) - The Croatian Government will direct its efforts to economic and development activities in the coming period. Goals are to give incentives to investments, help create more jobs, introduce measures for stimulation of export and investments, make changes in the tax policy, Prime Minister Ivica Racan said during Monday's multimedia promotion of the Government's project on its first hundred days since its inauguration. Racan confirmed that the government considered steps to cut the Value Added Tax (VAT) from 22 to 19 percent. "Yes, we are thinking about it, and the definite answer is possible at the coming session of the Government on Thursday," Premier added. Racan cited the settlement of situation in the state-owned companies, reforms of some economic sectors, a new concept of the state administration, reforms of the national security system, defence and interior affairs, the definition of pension reforms' time terms and de-politicisation of the entire society as the Government's future tasks. Premier pointed to refugee returns as a special task and announced that the Government would place particular attention to certain areas, such as, for instance, the war-stricken Vukovar. Statehood Day (May 30) will be marked in a working manner in the eastern-most Croatian town and on that occasion all measures aimed at the recovery of the area will be presented. Within today's presentation of "One Hundred Days", a short film about Government's first activities was shown. The film, made by the Premisa agency, is about the situation the Racan Government inherited from the previous one, about what new authorities did in the first 100 days since they took office and what they are planning to do in the future. (hina) jn ms