TWO OPPOSITION DEPUTIES PROPOSE AMENDMENTS TO VAT LAW

( Editorial: --> 7049 ) ZAGREB, Dec 9 (Hina) - Two opposition members of the Croatian Parliament proposed amendments to the Value Added Tax Act on Tuesday. Social Democratic Party deputies Mato Arlovic and Antun Vujic sent their draft amendments to the Parliament Speaker, proposing their adoption under urgent procedure. They proposed introduction of at least three rates, including a basic rate of 15 per cent. The two deputies said that a reduced rate of six per cent should be charged on the supply of electric power, gas and heating energy to households, housing construction, building material, and products and services of the economic sectors which the government declares to be of special interest for overall economic development, such as tourism, agriculture, fishery and textiles. A zero rate was proposed for basic foodstuffs, children's clothes, shoes, medicines, books, newspapers, equipment for invalids, education, health, and services of cultural institutions. The VAT law, due to take effect on January 1, envisages only one rate of 22 per cent. The proposers stressed they were not against the tax but in favour of several different rates and tax exemptions, saying they could not accept the same tax rate being applied for perfumes, jewellery, fur and other luxury items and food, children's clothes, footwear, medicines and books. They also proposed that the introduction of VAT be delayed until January 1, 1999. (hina) vm jn 091844 MET dec 97