IMPLEMENTATION OF VALUE ADDED TAX ACT SHOULD BE POSTPONED - GOVT

ZAGREB, 21 Nov (Hina) - The Croatian Government on Thursday adopted a bill on the postponement of the implementation of the Value Added Tax Act until 1 January 1998. The Act on Value Added Tax, according to which the tax on added value amounts to more than 22%, was adopted by the Parliament in June this year, and its implementation was to start on 1 January 1997. Speaking about reasons for the postponement, Finance Minister Bozo Prka said that the introduction of the value added tax was the most complex tax reform so far and that additional analyses of micro and macro economic environment should be carried out during the next year. At today's session, the Government also adopted three bills which are the basis for the completion of a reform of Croatia's penal code. The three bills concern penal code, criminal procedure and the protection of mentally disturbed persons. The reform of the overall criminal legislation is based on the penal code bill, Justice Minister Miroslav Separovic said, adding that the bill promotes fines as well as the consistent implementation of the principles of the state of law, and in some cases introduces general welfare labour instead of sentence of confinement. The Government also adopted a monthly supplement of 100 kunas to November pension allowances, which will be distributed in December. (hina) rm jn 211405 MET nov 96