KUNST: GOVT HAS SHOWN THAT IT LACKS SOCIAL SENSITIVITY

CRIKVENICA, May 20 (Hina) - The Association of Workers' Unions of Croatia on Saturday sent the Government an open letter expressing dismay at its decision to increase excise taxes and give up the reduction of the Value Added Tax rate. "The Association of Workers' Unions of Croatia requests from the Government, which has betrayed the confidence of the voters, to protect the prices of basic products because the increase of the price of gas will certainly cause uncontrolled growth of all other prices," the Association's president Boris Kunst told reporters at a new conference in Crikvenica today. By suggesting an increase in excise taxes, the government has shown that it is insensitive toward the problems of the largest and most destitute part of the population. It has continued the policy of the Croatian Democratic Union (HDZ) with minor cosmetic changes, and that policy led the country into a disastrous economic and social situation, Kunst said. Announcing an extraordinary congress of the Association for June 16, Kunst said he expected other unions and independent associations to join in protests. "If the government does not radically change some of its views soon, we can expect a 'hot autumn' in Croatia because most workers cannot reach the average salary," Kunst said. At a closed session on Thursday the Government adopted motions for changes on excise taxes on oil products. The price of motor gas would thus rise by 29 per cent, diesel by 13.7 per cent. Excise taxes would also increase for cigarettes, alcohol, coffee, beer and cars. On the other hand, contributions assessed on salaries for health and pension insurance would be reduced by two per cent. (hina) jn rml