INTRODUCTION OF V.A.T. A STEP TOWARDS E.U. - FINANCE MINISTER

( Editorial: --> 2096 ) ZAGREB, Jan 2 (Hina) - With the application of Value Added Tax as of January 1, Croatia has made a small step towards the European Union, Finance Minister Borislav Skegro said on Friday. Speaking at a news conference in Zagreb, Skegro said the government had decided that the import of commodities worth about $50 would not be subject to customs duties and VAT, introduced at a flat rate of 22 per cent. So far, goods worth $100 were not subject to customs. The government also decided that people who had stayed abroad for at least one year did not have to pay VAT on household items they had used when returning to Croatia. Skegro announced that the government would propose to parliament amendments to the Customs Act to abolish most privileges. The second day of the application of VAT shows that certain opponents have already given up, Skegro said, adding that frictions over the tax would last for several months. Noting that the Value Added Tax Act was good, the finance minister said some minor changes could be expected at the end of the year. Skegro said the government had drawn up special programmes for products which "ostensibly were not taxed", such as bread and milk, adding that it could be expected that similar programmes would be made for sugar and cooking oil. He said the government would set up a commission for the support of consumers, which would help in informing consumers and controlling traders. At the same news conference, Justice Minister Miroslav Separovic said that under a programme adopted by the government at a closed session on December 30, courts in Zagreb, Split and Rijeka would be working in two shifts to deal with the backlog. A total of 190 judges and 217 clerks and other staff members would be appointed for the programme launched on the initiative of President Franjo Tudjman, while funds would be earmarked from the national budget. Last year there were 793,436 outstanding court files, about 63 per cent of them in courts in Zagreb, Split and Rijeka. Separovic said that the large number of outstanding files called into question the exercise of citizens' constitutional rights. (hina) vm mm 021816 MET jan 98