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CONSUMER SUPPORT COMMISSION SUBMITS FINAL REPORT TO GOVERNMENT

ZAGREB, Dec 2 (Hina) - Price tendencies following the introduction +of Value Added Tax (VAT) proves that the tax in itself cannot cause +an increase in prices, or inflation, the Consumer Support +Commission said in its report submitted to the Croatian +Government.+ The Government introduced the VAT of 22 per cent on January 1 of this +year, soon after which it established the Consumer Support +Commission whose task is to note the impact of the VAT on prices, and +inform consumers about an excessive increase of insufficient +decrease in the prices of products and services.+ Following an initial rise in prices, a decrease confirmed the +Government's claim that the introduction of the VAT would allow +room for a price descent, because sales tax for operating costs has +been annulled, Commission chairwoman Martina Dalic told a news +conference at which she presented the final report.+(h
ZAGREB, Dec 2 (Hina) - Price tendencies following the introduction of Value Added Tax (VAT) proves that the tax in itself cannot cause an increase in prices, or inflation, the Consumer Support Commission said in its report submitted to the Croatian Government. The Government introduced the VAT of 22 per cent on January 1 of this year, soon after which it established the Consumer Support Commission whose task is to note the impact of the VAT on prices, and inform consumers about an excessive increase of insufficient decrease in the prices of products and services. Following an initial rise in prices, a decrease confirmed the Government's claim that the introduction of the VAT would allow room for a price descent, because sales tax for operating costs has been annulled, Commission chairwoman Martina Dalic told a news conference at which she presented the final report. (hina) lml mm

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