CRO TOURISM MINISTER ANNOUNCES CUTS IN VAT FOR TOURIST SECTOR

LONDON, June 23 (Hina) - Croatian Tourism Minister Ivan Herak told reporters in London on Wednesday the Croatian government was considering the possibility of introducing cuts on Value Added Tax for the tourist sector. The Croatian government is likely to reach a consensus which would treat the tourist sector as export economy and which would cut the VAT by ten percent, Herak said, adding the new tax regime could come into force as of August 15. He could however not say how much the Croatian government estimates the said cut will affect lower budgetary earnings, nor could he speak about the length of possible tax avoidance in the case when one sector of economy enjoys tax benefits. Herak called on British investors to invest in Croatia's tourism. He said next month the Croatian government would launch a bid for tenders for a study on the tourism market. Herak estimates some 50,000 tourists from Great Britain will visit Croatia this year, which is a third less than expected before the onset of the Kosovo crisis. Croatia's Ambassador to Great Britain, Andrija Kojakovic, told reporters the Lloyds of London insurance company today stated it would in the near future revoke a decision according to which the southern part of Croatia's Adriatic Sea is treated as a war risk zone. (hina) ha