SYMPOSIUM ON TAX REFORM IN CENTRAL, EASTERN EUROPE OPENS IN ZAGREB

ZAGREB, Oct 2 (Hina) - Some 30 tax and financial experts from 12 countries gathered in Zagreb on Thursday for a three-day seminar called "Symposium on Tax Reform in Central and Eastern Europe" organized by Manfred Rose from the University of Heidelberg's Alfred Weber Institute in cooperation with the Croatian Finance Ministry. The 12 countries partaking in the seminar are Germany, the Netherlands, Latvia, Poland, Romania, Slovenia, Slovakia, the Czech Republic, Hungary, France, Uzbekistan and Croatia. In his introduction, Rose pointed out choosing Croatia as the seat of the seminar was logical considering the successful complete tax reform, which will be rounded up once value added tax comes into effect on 1 January 1998. Speaking about reforms in Croatia, including the complete tax reform, Finance Minister Borislav Skegro said that 11 billion kunas were gathered through taxes in 1993, while three years later the figure was three times higher, without tax raises. Tomorrow marks four years since the introduction of the Croatian stabilization programme which, Skegro said, brought outstanding results: inflation has been under two percent per year for three years, budget deficit is low, production increased, and most of Maastricht criteria have been realized. Courage is necessary for a uniform rate, Skegro said in relation to the introduction of value added tax, with which the tax reform will end. At today's seminar, Croatia was praised for its tax system reform, Skegro added, assessing in both theory and practice one rate was the best for Croatia. He believes the introduction of value added tax will not result in a significant prices rise. Pero Jurkovic, the Croatian President's advisor for economy, outlined the directives on market globalization and tax reform. Special attention has to be directed at bilateral and multilateral agreements on double taxation avoidance, he stressed. The three-day seminar will discuss income and corporate profit taxation, tax relief for foreign investors, contracts on double avoidance taxation, value added tax, the ecology tax reform, the tax code concept and the concept on tax reform policy counselling. (hina) ha 021424 MET oct 97