OFFICIAL: REDUCTION IN TARIFFS TO BRING SIGNIFICANT DROP IN PRICES

ZAGREB, Sept 12 (Hina) - A government measure limiting the tax-free import of some groceries will discourage the devastating effect shopping in neighbouring countries has on Croatian economy, Croatian Deputy Finance Minister Damir Kustrak said on Tuesday. Commenting on the measure which has elicited stormy, mainly negative reactions, Kustrak said it should be viewed as part of a package of measures related to Croatia's access to the World Trade Organisation, to result in a dramatic drop in prices of groceries early next year. Finance Ministry analyses have pointed to a huge disproportion between the consumption of certain goods and quantities registered as sold on the Croatian market. The deputy minister said this had a very adverse effect on the national economy because taxes were not collected on the entire tax basis. He added the problem had reached the upper echelons which, alongside the impending ratification of Croatia's access to the WTO, had been the main reason for passing the measure. The autumn admission to the WTO will bring into force new, lower tariffs for agricultural and food products as well. New reductions will follow on January 1. This autumn, tariffs on meat products will drop by 25 percent, on dairy products by 28, vegetables 25, fruit 38, oil 52, confectionery products 26, and beverages 15 percent. This means the prices of these products will fall, said Kustrak. Commenting on trade unions' claims that the measure was an attack on the citizens' standard, Kustrak said only the black marketeers' standard would fall. He was shocked by the union's reaction. Unions should support the protection and opening of new jobs in commerce and other branches on which the measure will have a healing effect, he said. (hina) ha jn