GOVERNMENT AND UNIONS SIGN AGREEMENT ON WAGES BURDEN RELIEF

( Editorial: --> 0608 ) ZAGREB, April 30 (Hina) - Croatian Prime Minister Zlatko Matesa and Alliance of Independent Trade Unions of Croatia (SSSH) president Davor Juric on Thursday signed an agreement on relieving the burden on wages. The agreement outlines an increase in the untaxed portion of income to about US$156 (currently about US$125) and a progressive increase in the personal deduction for supporting family members. This regulatory agreement would come into effect from January 1, 1999, while in June a change to the Law on Income Tax would be submitted into parliamentary procedure. Harmony was also reach on proposed tax relief on wages with the abolition of children's allowance and water contributions, which are applicable from July 1 this year. Emphasising how the agreement changed the whole philosophy of taxation procedure, Prime Minister Matesa said much attention was being given to families and children. He said it was a significant document for the government, because it again showed that the government was prepared and willing for social dialogue, and with relevant partners it was able to reach an agreement which was based on considering the interests of both sides. SSSH president Davor Juric assessed that the agreement was the result of hard and heavy discussions and showed progress had been made. The SSSH Council would discuss the agreement at a meeting on May 6 and it must ratify it, Juric said. He said the possibility was open for continuing discussions in autumn, if on the basis of analysis it was concluded that living standards were endangered. (Hina) jn mb 301756 MET apr 98