ZAGREB, Sept 9 (Hina) - Wednesday's recommendation by the Committee for Strategic Decisions of the Presidential Council to introduce a zero rating for Value Added Tax (VAT) for bread, milk, books and medicines as well as an increase
in taxes on luxury items has come across a good reception from Croatia's ministers.
ZAGREB, Sept 9 (Hina) - Wednesday's recommendation by the Committee
for Strategic Decisions of the Presidential Council to introduce a
zero rating for Value Added Tax (VAT) for bread, milk, books and
medicines as well as an increase in taxes on luxury items has come
across a good reception from Croatia's ministers.#L#
The ministers of labour and social welfare, agriculture and
forestry, health, culture and economy on Thursday expressed their
satisfaction with the recommendation and expected that this should
result in a fall in prices for these product.
Journalists did not manage to obtain a statement from the Prime
Minister nor finance and tourism ministers.
Labour Minister Joso Skara said the adoption of this recommendation
should result in a fall in prices on basic food products which in
turn would improve the standard of living for Croatian citizens.
Health Minister Zeljko Reiner too was very satisfied with the
recommendation. He expressed hope that in implementing the
decisions medicines listed by the Institute for Health Insurance
will also include other medical products. "If this truly is the
case, this will mean a great relief for chemists and health
institutions", he said.
Pleased with the recommendation for the introduction of a zero
rating, particular for bread and milk, Agricultural Minister Ivan
Djurkic considers that this may in turn spark a decrease in the VAT
for raw materials in the agricultural sector. "I believe that this
sector should have at least three ratings which would contribute to
increasing competitiveness", Djurkic said. He added that this too
was in keeping with conditions for Croatia to access the World Trade
Organisation.
"This decision is welcomed by Croatian publishers and buyers", said
Culture Minister Bozo Biskupic who hopes that publishers will now
decrease their prices by 22 per cent.
Asked whether the zero rating related to newspapers, Biskupic
stated that the press was not entirely under his ministry's
jurisdiction.
He added that it was still necessary for further relief measures in
other fields of culture. "If one day there is to be a tax reform and
two rates of VAT are introduced there will be more room for a
decrease in prices which would be in accordance with European
standards, that is as is recommended by the Council of Europe", he
said.
Economy Minister Nenad Porges considers that the introduction of
the zero rating should result in a decrease in prices and
"improvement in social standards". He considered that this new
measure will not disrupt the budget balance.
(hina) jn sp