GOVERNMENT ON TAXATION NOVELTIES

ZAGREB, June 16 (Hina) - Exercising a special statutory authority, the Croatian Government on Thursday issued several decrees relative to taxation, pensions and salaries. Summing up, Premier Nikica Valentic explained that the Government had taken over certain matters that ordinarily lay within the competence of Parliament. "We had to do this because we could not let these matters go unresolved if the Parliament for some reason or other fails to deal with them at the next session," said the Prime Minister. The decrees issued today include a decree raising the non- taxable part of a salary from 400 to 500 kunas, as well as decrees on pensions, salaries of employees in health care institutions, excises on oil derivatives, tobacco, beer, alcohol, non-alcoholic drinks and imported cars, amendments to the Road Traffic Act and the Turnover Tax Act. These decrees have to be ratified by the Parliament before a certain deadline. Expounding on the decree on salaries of employees in health care institutions, Health Minister Andrija Hebrang recalled that a former Government decision on coefficients for these salaries was rescinded by the Constitutional Court. He stressed that the decree ensured the implementation of the stabilisation programme in public health. The Constitutional Court rescinded the above-mentioned decision on coefficients last Tuesday, whereupon Minister Hebrang offered his resignation. The resignation was, however, rejected by the Prime Minister the very next day. Addressing the Government on the subject of the implementation of the stabilisation programme, Prime Minister Valentic said the gross national product would top 21 billion DEM by the end of the year. According to the Prime Minister, public expenditure would total 10.5 billion DEM but should be cut below 50 percent. National Bank Governor Pero Jurkovic announced that the foreign currency reserves would total 2.5 billion dollars by the end of the year. 162002 MET jun 94