ECONOMY MINISTER & FARMERS DISCUSS WHEAT PURCHASE, VAT...

( Editorial: --> 7652 ) OSIJEK, July 14 (Hina) - Economy Minister Nenad Porges and his associates held talks with Osijek County Prefect Srecko Lovrincevic and county business people on Tuesday. After the meeting, which was held behind closed doors, Porges said that the "economic situation in the county is difficult" and that the production potential in the region was not exploited adequately. The Economy Ministry will set aside ten million kuna for the production revival in Osijek County, Porges announced. The Economy Minister today also met farmers, millers, bakers and representatives of the Association of Farmers of Slavonija and Baranja. The meeting focused on the purchase of wheat. The Croatian Government is aware of its ethic and legal obligations concerning the purchase of wheat surplus, Porges said adding the decision on the purchase of additional 200,000 to 300,000 tonnes of wheat in instalments had to be made because it was impossible to pay a total of 550 million kuna, needed for the buy-off of this year's harvest, at one go. The farmers presented their objections to the model of calculation of the protective price, Value Added Tax (VAT) application and administrative obstacles in the buy-off process. The president of the Association of Farmers of Slavonija and Baranja, Antun Laslo, said that those farmers who paid VAT would lose 22% of the overall worth in the production process or 600 kuna per hectare. The Association demands that farmers - VAT payers be paid the purchase price of 1,10 kuna per one kg of standard quality wheat. VAT would be a considerable financial burden for individual producers and in case their request is not met, the farmers will hold a protest meeting, Laslo said. "It is indisputable that individual farmers, who are not VAT payers, will be paid the guaranteed price of 1,10 kuna so we have to see what can be done for other categories," Porges said. He added that the Government would be informed about the proposals presented at today's meeting and consider the farmers' problems as necessary. (hina) as rml 141930 MET jul 98