ZAGREB, Sept 11 (Hina) - Croatian workers' unions on Monday blasted the government's decision to radically limit the import of duty-free groceries for personal use and requested an urgent meeting with representatives of the government
and employers regarding the effect this measure will have on citizens' living standards. Union representatives believe the sudden measure questioned the meaning of further negotiations on an agreement on social truce. The measure was announced on Sunday by the Croatian Finance Ministry as an Instruction on Customs Duties. According to the instruction, imports for personal use refer to one kilogram of detergent, coffee and sugar each, and one litre of oil, non-alcoholic drinks, etc. For all products exceeding this quantity limit, customs duties and Value Added Tax will be paid even if the overall value of imported goods does not exceed 300 kuna, which is the allowed v
ZAGREB, Sept 11 (Hina) - Croatian workers' unions on Monday blasted
the government's decision to radically limit the import of duty-
free groceries for personal use and requested an urgent meeting
with representatives of the government and employers regarding the
effect this measure will have on citizens' living standards.
Union representatives believe the sudden measure questioned the
meaning of further negotiations on an agreement on social truce.
The measure was announced on Sunday by the Croatian Finance
Ministry as an Instruction on Customs Duties. According to the
instruction, imports for personal use refer to one kilogram of
detergent, coffee and sugar each, and one litre of oil, non-
alcoholic drinks, etc. For all products exceeding this quantity
limit, customs duties and Value Added Tax will be paid even if the
overall value of imported goods does not exceed 300 kuna, which is
the allowed value of goods which can be imported without customs
duties and VAT. The measure has come into force today.
Croatian union federations judged the government's decision was an
attack on the living standards of a large number of Croatian
citizens, primarily the most destitute categories.
The government should have protected the most destitute categories
of the population by subsidising production and decreasing the
prices of strategic goods and services, and secured the filling of
the budget by putting an end to smuggling, improving the collection
of taxes from tycoons and imposing taxes on luxury products,
stressed the head of the Association of Workers' Trade Unions of
Croatia (URSH), Boris Kunst.
This government move only continues the policy of social
insensitivity, the union leader said.
The government should have created conditions for citizens to buy
goods in Croatia instead of abroad. It is time for the government to
reconsider the union proposal regarding the introduction of
several VAT rates or the reduction of the general VAT rate, the
president of the Federation of Independent Trade Unions of Croatia
(SSSH), Davor Juric, said.
Limiting the import of groceries could be justifiable only if it
would stimulate the growth of domestic production, primarily the
food industry, resulting in a better protection of jobs at the time
when Croatia is entering the World Trade Organisation (WTO), Juric
said. He believes the government's measure could cause prices to
rise.
The measure contradicts the proclaimed government policy of
reducing customs duties and eliminating obstacles to a free market,
a member of the Croatian Association of Trade Unions (HUS), Zdenko
Mucnjak, believes.
The government's failure to inform its social partners of the
measure it was preparing, despite the fact that its representatives
last week held a session with unions' and employers'
representatives sitting on the Economic and Social Council,
jeopardises the continuation of the social dialogue, warned
Kresimir Sever, head of the Independent Croatian Trade Unions.
(hina) jn rml