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RACAN: GOVT CONSIDERS REDUCING VAT TO 19 PERCENT - EXTENDED

ZAGREB, May 15 (Hina) - The Croatian government will direct its efforts to economic and development activities in the coming period. The goals are to give incentives to investments, help create more jobs, introduce measures for the stimulation of export and investments, make changes in the tax policy, Prime Minister Ivica Racan said during Monday's multimedia promotion of a government project on its first hundred days since inauguration.
ZAGREB, May 15 (Hina) - The Croatian government will direct its efforts to economic and development activities in the coming period. The goals are to give incentives to investments, help create more jobs, introduce measures for the stimulation of export and investments, make changes in the tax policy, Prime Minister Ivica Racan said during Monday's multimedia promotion of a government project on its first hundred days since inauguration.#L# Racan confirmed the government was considering steps to cut Value Added Tax (VAT) from 22 to 19 percent. "Yes, we are thinking about it, and the definite answer is possible at government's coming session on Thursday," the premier added. According to Racan, the government's future tasks comprise resolving the situation in state-owned companies, reforms of some economic sectors, a new concept for state administration, reforms of the national security system, defence and internal affairs, the definition of pension reforms' time terms, and the de- politicisation of the entire society. The premier pointed to refugee returns as a special task and announced the government would place particular accent on certain areas, such as the war-stricken eastern-most town of Vukovar. Statehood Day, May 30, will be marked in a working manner Vukovar, 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 was shown about the government's first activities. The film, made by the Premisa agency, is about the situation the Racan Government inherited from the previous one, what the new authorities have done in the first 100 days since taking office, and what plan on doing in the future. The project was also presented in a separate booklet and CD-Rom "The Government's One Hundred Days". In attendance were numerous reporters, Premier Racan's closest associates, and all ministers. Among the greatest achievements the government has made in its first 100 days are the democratisation of society, the consolidation of the economy, and the commitment to return all past governments' debts by year's end, as well as the recognition of tourism and agriculture as state potentials, and getting closer to integration with European and Trans-Atlantic institutions. The achievements were also presented as part of a video projection broken down into five segments - economy, national security, media, society, and foreign affairs. By year's end, the government has to prepare a set of stimulative fiscal measures for foreign investors and domestic entrepreneurs, realise a state treasury project, and stabilise the banking sector. (hina) ms/ha jn

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