LOWER HOUSE MP'S REQUEST PROTECTION OF DOMESTIC WINE PRODUCERS

( Editorial: --> 7791 ) ZAGREB, Jan 28 (Hina) - The Croatian National Parliament House of representatives on Wednesday continued session which began on 21 January. At the beginning of the session, Prime Minister Zlatko Matesa explained the suggestion on a vote of confidence to a member of the Croatian government and Minister of Croatian Homeland War Soldiers, Juraj Njavro. The Lower House ended discussions on 11 items on the agenda. Proposed amendments to the Law on special tax on alcohol attracted most attention. The amendments would equal the consumption tax of both domestic and imported alcoholic beverages, and the same tax is proposed for wines. The consumption tax per litre of pure alcohol would be fourteen German marks instead of the present DM17 for imported and DM8.5 for domestic beverages. It was this provision which perturbed all MPs who stressed that this would have a very negative effect on domestic winegrowers and wine producers, adding that it was necessary to protect and stimulate the production of quality wines. "Such policy will force our winegrower to sell free of charge," Petar Zitnik of the Croatian Peasants' Party (HSS) said. Ivica Gazi of the Croatian Democratic Union (HDZ) said he did not understand how consumption tax for beer was DM0.22, while for wine it would be DM1.7 per litre. Behind such unequal positions, Gazi saw "the influence of powerful brewers who are in the hands of foreign capital and had influence in the government on such bills". He suggested that wine be exempt from consumption tax. He was supported by other MPs. Assistant Finance Minister and director of the Tax Administration, Mate Perkovic announced that the government would probably suggest another way of imposing tax on wine by the second reading. It was the suggestion of foreign partners and the request of the World Trade Organisation (WTO) that domestic and imported alcohol be equalled, Perkovic said, adding that changes in the customs tariff would be suggested in order to protect domestic products. MPs also discussed bills on ratifying several international agreements, among which is the Agreement on the guarantee for the project of recovery of investments between Croatia and the International Reconstruction and Development Bank. (hina) lm jn 281456 MET jan 98