LOWER HOUSE DISCUSSES AGRICULTURE INCENTIVES, EXPENDITURE TAXES

ZAGREB, Sept 30 (Hina) - Opposition MPs on Thursday said the proposed increase in financial stimulation for fishing was not the right solution, and asked that fishermen should be able to buy fuel at considerably lower prices. On Thursday afternoon the national Sabor's House of Representatives discussed proposed amendments to the act on financial stimulation in agriculture and fishing and three bills, proposed by the ruling Croatian Democratic Union (HDZ) bench, on expenditure taxes on cars, cigarettes and luxury items. According to amendments to the act on financial stimulation in fishing, incentives for the catch of one kilogram of blue fish (except tuna) should rise to 40 lipa, whereas the stimulation for other kinds of fish should increase to 3.30 kuna. The incentive for lobster should total 10 kuna per kilogram. The Agriculture Ministry believes that in this way fishermen may receive compensation for duties on fuel they buy and road tolls they pay. Opposition deputies thought that fishermen should be helped by being able to get fuel exempt from taxes. The HDZ bench forwarded three bills on expenditure taxes in the parliamentary procedure, and they did it in connection with proposed introduction of the zero rate of Value Added Tax (VAT) on bread, milk, books and medicines. The aforementioned bills should help pour additional 150 million kuna (US$ 20.5 million) into the state budget. The bills on expenditure taxes on some cars, cigarettes and certain luxury items, should go into effect as of November 1. Opposition MPs - Mato Arlovic of th Social and Democratic Party (SDP) and Marinko Filipovic of the Croatian Peasants' Party (HSS) - said those changes would not bring desirable results. The current tax policy motivates citizens to avoid taxes by going shopping abroad, and the proposed expanditure taxes will compensate for just one third of reduced budgetary revenue, Arlovic explained. (hina) ms