LIVING COSTS RISE BY 7% TO 8% - TRADE UNIONS

( Editorial: --> 2809 ) ZAGREB, 7 Jan (Hina) - The first analyses of consequences of the introduction of Value Added Tax (VAT) with a 22 per cent tax rate show that living costs in Croatia have increased by 7 to 8 per cent. So far, decreases in prices are insignificant, representatives of the Association of Independent Trade Unions of Croatia (SSSH) told a press conference in Zagreb Wednesday. "The first indicators of movement in prices following the introduction of VAT, which we have been following in all counties, have confirmed our warnings," the SSSH President Davor Juric said. The expected increase in prices of basic foodstuffs was not accompanied by the announced decrease in prices of some products, for example clothing, because traders added the difference from decreased prices to their margin, Juric said adding this affected pensioners most. VAT would cause a further rise in the unemployment rate, Juric said. The SSSH President also criticised the Government decision on the reduction of value of imported goods which are exempt from VAT and customs tariffs to some US$50. Croatian citizens were being underestimated with this reduced value, Juric added. (hina) mm rm 071517 MET jan 98