MANFRED ROSE: CROATIAN TAX SYSTEM IS EXEMPLARY

ZAGREB, Oct 20 (Hina) - Manfred Rose, a member of the German Society for Technical Cooperation (GTS) and one of the makers of the Croatian tax system, described the system as favourable for savings and investments, and simple to apply. He recommended the system as a model for European countries and the European union. At a presentation of the reform of the Croatian tax system in Zagreb on Tuesday, Rose said that due to the simplicity and clarity of the new system, new opportunities are showing for young entrepreneurs. The Croatian tax system covers two basic categories: the minimum of resources for families, and minimum of capital. Finance Minister Borislav Skegro said the main part of tax reforms have been completed. Skegro added that next year's profits from VAT would amount to US$3.7 billion. Commenting on requests for the introduction of more tax rates instead of the one of 22 per cent, Skegro said that that would result in all tax reliefs for the poor ending up in the middle class. "It is much better to solve their problems via clear transfers of budget resources, through the system of social policy, than to lower some rates," Skegro said. (hina) lml jn