ZAGREB, May 23 (Hina) - The president of the Association of Workers' Trade Unions of Croatia (URSH), Boris Kunst, told reporters in Zagreb on Tuesday the government's proposal on increasing excise taxes, which will increase the price
of oil products, and its giving up the reduction of the VAT rate deserved "more than just dismay". "Those who expected better living conditions have been cheated. The Government has continued squeezing money out of citizens' pockets to cover excess state spending," Kunst said. Kunst described as unfounded Finance Minister Mato Crkvenac's statement that the increase in the price of petrol would not affect the prices of other products because the Government had also suggested the reduction of contributions assessed on salaries, which would result in lower labour costs. "Increases in the price of petrol always cause an increase in the prices of other products," Kunst said. New excise
ZAGREB, May 23 (Hina) - The president of the Association of Workers'
Trade Unions of Croatia (URSH), Boris Kunst, told reporters in
Zagreb on Tuesday the government's proposal on increasing excise
taxes, which will increase the price of oil products, and its giving
up the reduction of the VAT rate deserved "more than just dismay".
"Those who expected better living conditions have been cheated.
The Government has continued squeezing money out of citizens'
pockets to cover excess state spending," Kunst said.
Kunst described as unfounded Finance Minister Mato Crkvenac's
statement that the increase in the price of petrol would not affect
the prices of other products because the Government had also
suggested the reduction of contributions assessed on salaries,
which would result in lower labour costs.
"Increases in the price of petrol always cause an increase in the
prices of other products," Kunst said. New excise taxes will cause
increases in the price of other products because the VAT rate would
also be calculated on the basis of higher excise taxes, he
believes.
Shifting the deadline for the payment of VAT will affect all those
who have high lump sum taxes because the refund deadlines will be
extended.
Kunst believes the government measures would jeopardise the
tourist season because tourists would give up their holidays in
Croatia due to higher prices.
"The URSH's patience is wearing thin. We demand the protection of
prices of basic food stuffs, and if the Government continues to
impoverish the most destitute part of the population, we will
organise large protest meetings," the URSH president announced.
The Government suggested at its latest session that the VAT rate of
22 percent remain unchanged and that the deadline for the payment of
VAT be extended from the tenth day of the month to the end of the
month.
The Government also adopted draft changes to excise taxes on oil
products, which would result in a 29-percent increase in the price
of petrol and a 13.7-percent increase in the price of diesel. Excise
taxes on tobacco, alcohol, coffee, beer and cars would increase as
well. On the other hand, contributions for health and pension
insurance assessed on salaries, which are paid by employers for
their employees, would be reduced by two percent.
(hina) jn rml