IF VAT ON TOURISM SHOULDN'T BE CUT, MINISTER HERAK WILL RESIGN

KASTEL/PLOVANIJA, Aug 1 (Hina) - Croatian Tourism Minister Ivan Herak on Sunday expressed confidence that Value Added Tax (VAT) on tourism should be reduced soon. In case it does not happen he has promised to resign. #L# In Croatia, VAT included in all products and services is 22 percent. "Although it was brave from me to announce a cut in VAT, I assure you that the VAT rate, according to an estimate of the Tourism Ministry, will decrease by 10 to 12 percent. I expect it on the coming session of the Sabor in autumn. In case it doesn't happen, I will be no more in this Ministry," Herak told reporters during his tour of the border crossings of Kastel and Plovanija in Istria. The Minister also advocated that tourism should receive the status of exporters and proposed that the reduction of the VAT rate should not be final but the next move in this direction should present a compromise between the Croatian tottering tourism and necessities of the national economy. That the situation around tourism is considerably improving has been confirmed by last week's decision of the Government in which those responsible for failures in connection with the Croatian tourism start answering for that, he added. At the two border crossings that he visited, Minister Herak got an excellent impression and this also proves the preparedness of Croatian relevant ministries and services. He commended the close cooperation between Croatian and Slovene police and praised Croatian policemen for "the perfect regulation of traffic on roads." Commenting on the further course in the tourist season Herak predicted that results which may be achieved in tourism in September can correct, to a great extent, consequences of the Kosovo crisis. At the border passes of Plovanija and Kastel Minister Herak welcomed some tourists coming from Slovenia and Italy and wished them nice holidays in Croatia. (hina) ms