NUMBER OF V.A.T. PAYMENTS AT BORDER CROSSINGS MINIMAL

( Editorial: --> 2068 ) ZAGREB, Jan 2 (Hina) - Croatian customs officials at the Pasjak and Rupa border crossings with Slovenia said on Friday that the number of payments of Value Added Tax, introduced on January 1 at a flat rate of 22 per cent, was minimal. Drago Brhan, head of the customs office in the northern Adriatic town of Pula, said the government decision to exclude imported commodities worth about $50 from taxation and customs duties had facilitated application of the VAT Act at border crossings. Flavio Kmet, head of the customs office at the Kastel border crossing, said that not a single payment of VAT had been made at all three border crossings in Istria in the last two days. On Thursday and Friday, only about 30 vehicles crossed the border with Hungary at Donji Miholjac and Knezevo, which represents a huge reduction in traffic compared to last year when as many as 10,000 people crossed the border there on a daily basis. Matija Kolar of the customs office at Knezevo said that no customs duties or VAT had been charged as passengers returning from Hungary had not imported any goods. (hina) vm mm 021935 MET jan 98