HDZ: INCREASE IN EXCISE TAXES WILL INCREASE INFLATION

ZAGREB, May 24 (Hina) - The bench of the Croatian Democratic Union (HDZ) opposes a government-motioned package of tax laws, believing an increase in excise taxes, especially on oil products, could increase inflation and devalue the national currency. "An increase in the price of petrol could affect the growth of inflation, which in the autumn could lead to a devaluation of the kuna," Ivan Suker told reporters in Zagreb on Wednesday. Croatia's largest Opposition party also believes a motioned reduction of contributions on pension and health insurance could result in a financial deficit in the two funds, which could jeopardise the payment of pensions. According to the HDZ, a motioned delay in the payment of Value Added Tax from the tenth to the last in the month for the preceding month will not bring any good. The party has suggested that companies should pay VAT once they collect their claims. Djuro Njavro said 80,000 craftsmen would be brought into an unequal position if parliament adopted amendments to laws on profit and income tax. Most craftsmen pay income tax, while the bill of amendments does not envisage the possibility of keeping profit, namely the non-taxing of reinvested profit, he asserted. Njavro believes that is just a technical mishap, and not government's intention to bring craftsmen in an unfavourable position. (hina) ha jn