CRO GOVT CONTINUES NEGOTIATIONS WITH TRADE UNIONS

ZAGREB, Oct 10 (Hina) - The Croatian Government and two trade union federations on Thursday established a joint task group which will by 23 October suggest the rate of the lowest income, negotiation teams of the government and the trade unions said in a statement. Negotiation teams held a meeting on 9 October at which they agreed that dismissal wages be urgently freed of the obligation to pay contribution. A proposal to raise the profit tax rate from 25 to 35 per cent next year was also agreed on. Negotiation teams agreed on the urgent necessity to work out how to measure the increase or the decrease of the population's purchasing power. Negotiations on the rate of non-taxable income and the tax- relieving system will continue on 18 October, concluded the statement signed by vice premier Borislav Skegro, the president of the Independent Trade Unions Association, Davor Juric, and the president of the Croatian Trade Union Association, Niko Gunjina. (hina) ha jn 101654 MET oct 96