ASSISTANT FINANCE MINISTER ANNOUNCES CHANGES TO TAX POLICY

PLITVICKA JEZERA, Aug 27 (Hina) - Assistant Finance Minister Damir Kustrak on Sunday informed reporters at the Plitvice Lakes that the parliament would in the autumn discuss a draft proposal on the reduction of profit tax from 35 to 25 percent as well as that the protective interest rate would be cancelled and that the salaries of newly-employed persons would be treated as tax deductions. This should stimulate investments and employment, Kustrak said after the completion of a four-day working meeting on the guidelines of economic development and social policy, held at the Plitvice Lakes. Kustrak also announced the introduction of the third income tax rate, so that there would be three income tax rates - of 15, 25 and 35 percent. This would mean lower taxes for lower salaries, he added. As regards the taxation policy in the units of local self- government, it has been proposed that all cities and towns be granted the right to introduce surtaxes. Also considered has been the introduction of taxes on property which is not being used, such as land which has not been tended to. Kustrak also announced that parliament would this autumn also discuss a general taxation law, which would regulate all relations between the tax administration and the tax-payer, as well as a law on tax advisors, which would be useful for both the tax-payer and tax administration. (hina) rml