CROATIAN GOVT. TO DISCUSS PACKAGE OF DRAFT TAX ACTS TOMORROW

ZAGREB, Oct 18 (Hina) - Following consultations and harmonisation of views of competent ministries, Croatia's Government is expected tomorrow to draft several acts referring to tax on profit, income, local tax system, tax consultancy and amendments on the law on tax on real estate turnover. During its regular session on Thursday, the Government is to make public its stance on several issues, which according media reports, have recently been contentious matter between ministers. One of those disputable issues is whether entrepreneurial profit should be taxed. According to a recent statement given by Premier Ivica Racan, some ministers believe that such profit should not at all be taxed as they regard it as a stimulating measure for investments in Croatia. One of possible novelties will be the introduction of three rates of income tax. So far there have been two rates. Another new thing would be taxes on real estate. Granting an interview to the Croatian Radio on Monday, PM Racan said there were problems about the taxation of property and real estate which was not income-earning, and that he insisted personally on taxes on houses or villas worth three or four million German marks, whose owners so far have not been asked how they earned so much money and whether they paid tax. "The item of income on which tax is paid and the item of property must be equal," Racan stressed. During a part of tomorrow's session which reporters can attend, the Government will consider 22 items on the agenda, including a draft act on school textbooks. (hina) ms