ASSOCIATION OF CRO WORKERS' UNIONS DEMANDS POSTPONEMENT OF APPLICA

APPLICA $ TION OF VALUE ADDED TAX ZAGREB, 11 Oct (Hina) - The Association of Croatian Workers' Unions (URSH) has asked from the Government to postpone the application of the Law on Value Added Tax for at least a year, until the country's economy is stabilized and better social mechanisms for the protection of the poor are established, URSH representatives told a press conference in Zagreb on Friday. #L# The introduction of value added tax at the beginning of 1997 would cause an increase in the price of most products, which would range from 8% to 15%. The prices of food products, like bread, milk, flour, sugar and oil would also increase from 7,7% to 12,4%, URSH President Boris Kunst said. If the price increase in 1996 is added to that, the prices would register an 18%-rise in a year time. A too high tax rate (22%) would represent an additional burden to Croatia's economy and it would endanger the marketing of domestic products and increase the outflow of assets into much cheaper foreign countries, Kunst said. The URSH has officially requested to join the negotiations on salaries and tax policy which are being held between the Government on one side and the Association of Independent Croatian Unions (SSSH) and Croatian Unions' Association (HUS) on the other. (hina) rm jn 111639 MET oct 96