EXPORTERS PROPOSE EXPORT-STIMULATING MEASURES

( Editorial: --> 9382 ) ZAGREB, March 13 (Hina) - Croatian exporters have proposed that the Government strengthen the Croatian Reconstruction and Development Bank (HBOR) as an export-stimulating institution, decrease the price of labour and reduce employers' obligations concerning sick- leave from 42 to 15 days as well as lower profit tax rates from 35 to 25 per cent and change the law on customs tariffs, with the aim of stimulating exports. These proposals were presented in a document called a Proposal on Measures for Stimulating Export, which was drawn up in the Croatian Chamber of Commerce. The document was handed to Finance Minister Borislav Skegro at a meeting held in the Chamber of Commerce on Friday. Some 10 representatives of export companies warned about the difficulties in their export business. The payment of Value Added Tax (PDV) at the beginning mostly benefits banks because of commission, exporters said, adding that they had spent all their money and that the export of services should be stimulated along with the export of goods. The problem of export brokers should be solved, the paperwork should be reduced and customs and tax regulations should be adapted to stimulating export, they said. Speaking about the proposed measures, Skegro said that Croatia was interested in entering the Central European Free Trade Association (CEFTA) and signing bilateral agreements on free trade as soon as possible. HBOR would be given some US$15.5 million for granting loans and securing export, Skegro said, adding that the reduction of the cost of labour had begun. The Government was aware that employers' obligations for sick- leave payments should be reduced, Skegro said, but warned that it would cause difficulties as the money still had to be secured from other sources. In the first several months of its application, PDV had increased the demand for transaction money, Skegro said, asking exporters why they "didn't save money", especially since they had known the content of the Law on Value Added Tax for two and a half years. Skegro rejected the proposal to reduce profit tax rates to 25 per cent, recalling that craftsmen and freelance professions would be in a more unfavourable position. (hina) jn rm/mrb . 131813 MET mar 98