HUP POSITIVELY ASSESSES GOVT PACKAGE OF TAX LAWS

ZAGREB, May 24 (Hina) - The Croatian Association of Employers (HUP) on Wednesday positively assessed Government's bills of amendments to several laws on taxes -- the profit tax, income tax, and Value Added Tax (VAT) -- by which the Government directly influenced the decrease of the cost of labour. The HUP believes that this move will begin to carry out programme announcements of the new Government on reducing the burden of economy and implement measures which could efficiently make easier and initiate the employment, the HUP management reported Wednesday. The HUP also positively assessed the decrease of pension insurance contribution from 10.75 percent to 8.75 percent , as well as health insurance contributions from nine to seven percent. This will decrease expenses of employers by 3.31 percent, the HUP management assessed. They stressed that the implementation of higher amounts of excise taxes particularly on oil products, would influence the increase of operating costs. The HUP particularly positive assessed a government's bill of amendments to the law on profit tax. HUP officials believe that amendments to the system of VAT taxation, in line with which the deadline for paying taxes would be at the end of the moth instead of the 10th in the month, would have a positive impact on the decrease of illiquidity and the improvement of the financial ability of a company. (hina) it mm