ZAGREB, July 12 (Hina) - Croatia's House of Representatives on Wednesday adopted an investment stimulation bill by a majority vote. During the discussion on this act, members of the ruling six-party coalition commended the document,
while the opposition described it as an incomplete act.
ZAGREB, July 12 (Hina) - Croatia's House of Representatives on
Wednesday adopted an investment stimulation bill by a majority
vote.
During the discussion on this act, members of the ruling six-party
coalition commended the document, while the opposition described
it as an incomplete act.#L#
In compliance to this law, each entity that invests four million
kuna (one million German marks) into a newly-founded company, will
be entitled to stimulating measures in customs and taxes.
The legal entity which invests at least ten million kuna (2.5
million German marks) in following ten years, will pay a seven
percent profit tax in case it employs at least 30 workers. The
higher investment and the more employees, the lower tax will be, the
law stipulates.
In addition, the government will give assistance of 15,000 kuna (DM
3750) per employed person.
Besides, the state-owned real estate will be rented or sold under
favourable conditions for such purpose. In order to make all of this
possible, the Government is planning to set up two funds within four
months: one fund will be for real estate for investment stimulation
and the other for incentives for creating more jobs.
On Wednesday afternoon, the national parliament's lower house
discussed amendments to the law on the state budget execution.
The Government proposed that the Croatian Privatisation Fund (HFP)
be authorised to manage the state claims in companies the shares of
which are in the government's portfolio, so that the privatisation
process be expedited and some companies be saved, despite their big
debts, if they have good prospects. The HFP can write off or
reschedule debts.
Deputy Finance Minister Damir Kustrak said this step could help
about 1,800 companies and preserve a part of jobs for about 240,000
workers employed with them.
A majority of MPs described the proposal as good, but Ivan Suker (on
behalf of the Croatian Democratic Union or HDZ bench) claimed this
would give tremendously great authorities to the HFP. Furthermore,
it is unclear whether this proposal would apply for companies where
the Government possesses less than a majority of shares, for
instance just two percent of shares.
The lower house is to vote on this draft bill on Thursday.
The House of Representatives unanimously adopted an act on
obligations and rights of state officials, under which officials
are also State Treasurer, chiefs-of-staff, heads of state-run
agencies and offices and heads of institutes, appointed by the
Government.
(hina) ms