CRO LOWER HOUSE ADOPTS AMENDMENTS TO VAT, PAVLOVIC TAKES OATH

ZAGREB, Oct 1 (Hina) - Croatian Parliament House of Representatives on Friday adopted amendments to the Law on Value Added Tax, so that as of November 1, VAT on bread, milk, books, medicines on the list of the Croatian Health Insurance Institute, nursing milk substitutes, medicinal aids and implantation, will be cancelled. As of the same date, taxes on cars in excess of 75 kW and cigarettes will be increased, and taxes will be introduced for luxury products in line with the adopted tax laws. The adopted VAT tax was motioned by the ruling Croatian Democratic Union (HDZ), while MPs dismissed amendments motioned by the Social Democratic Party (SDP). Ivan Pavlovic, Maritime Affairs, Transport and Communications Minister, took an oath Friday before the House. The Lower House also adopted a number of bills, including the bill on pension insurance societies and the payment of pensions based on individual capital savings, and a bill on fire-fighting. MPs also adopted draft amendments to the Law on Croatian armed Force Service, according to which Croatian Armed Forces Day would be marked on August 5, on Croatian Thanksgiving day, not on May 28. The house also adopted a bill by which the Government is given the authority to decree certain issues in the jurisdiction of the Lower House. The House of Representatives adopted Friday amendments to the Law on Duties and Rights of state officials by which the deadline for officials to be members of boards of companies, institutes and non- budgetary funds is extended by a year (until October 16, 2000). In the first reading MPs endorsed a bill on IDs and amendments to the Law on Telecommunications. The House also adopted several reports, including reports on the financial situation in the Croatian Railways company, on the implementation of the budget for the first six months, an annual report on the work of pension and invalid insurance funds for last year. (hina) lml