ZAGREB, May 16 (Hina) - The Croatian Government discussed the suggestion for cutting the Value Added Tax (VAT) rate from 22 to 19, at Tuesday's closed session, but a final decision is likely to be made on Thursday, Finance Minister
Mato Crkvenac told reporters this evening. The Government is planning to extend the current deadline for balancing of accounts from the tenth day in a month to the end of the month, so that the VAT for the previous month should be paid at the end of the following month, the Minister explained. This evening we have not made any decision, it is likely on Thursday, Crkvenac said. Besides, we are preparing changes of laws on profit tax and income tax, he said adding that those are measures aimed at easing the burden on the economy and stimulating job creation and investments. A possible cut of the VAT to 19 percent will mean that the budget revenue is lessened by 2.4 billio
ZAGREB, May 16 (Hina) - The Croatian Government discussed the
suggestion for cutting the Value Added Tax (VAT) rate from 22 to 19,
at Tuesday's closed session, but a final decision is likely to be
made on Thursday, Finance Minister Mato Crkvenac told reporters
this evening.
The Government is planning to extend the current deadline for
balancing of accounts from the tenth day in a month to the end of the
month, so that the VAT for the previous month should be paid at the
end of the following month, the Minister explained.
This evening we have not made any decision, it is likely on
Thursday, Crkvenac said.
Besides, we are preparing changes of laws on profit tax and income
tax, he said adding that those are measures aimed at easing the
burden on the economy and stimulating job creation and
investments.
A possible cut of the VAT to 19 percent will mean that the budget
revenue is lessened by 2.4 billion kuna (0.6 billion German marks)
by the end of 2000. According to Crkvenac, at the moment 1.4 billion
kuna (0.35 billion marks) can be compensated in other ways.
According to a statement released after Tuesday's closed session,
the Government also considered amendments to the law on excise
duties on petroleum products, cars, alcoholic drinks and coffee.
The purpose of such possible changes is to strengthen the economy,
give incentives to entrepreneurship, create new jobs and relieve
the ultimate consumer of the tax burden.
The Government ordered to ministries to analyse in detail until
Thursday's session the possible impact of those changes in
industrial sectors and branches, read the statement.
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