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PM says assets won't be taxed for now

ZAGREB, Nov 27 (Hina) - Prime Minister Zoran Milanovic said in parliament on Wednesday that, for now, the government would not impose a tax on assets because the ruling coalition partners could not agree on it.

Asked by Martina Dalic of the Croatian Democratic Union (HDZ) if he could guarantee to citizens and entrepreneurs that new taxes would not be imposed or tax rates increased in the next two years, Milanovic said there would be no new taxes but that the tax on assets would be discussed.

There are reasons why many states have that tax but it will not be imposed at present, he said, presenting a 2014 draft budget with projections for 2015 and 2016.

The opposition criticised the draft, repeating that the budget problems could not be solved without economic growth.

The budget is a political document which reveals the government's character, and the 2014 budget indicates that the Croatian government is opting for economic stagnation, to which successful states give a wide berth, said Branko Vuksic of the Labour Party.

Croatia has not spent 2013 on reform or strategic projects but on wandering, he said, accusing the ruling coalition of needing two years to sober up.

Vuksic said the current number of 356,000 jobless could reach 370,000 by the end of the year and 400,000 next spring.

Dalic said the growing tensions in society could not be solved without growth, highlighting the need to improve conditions for doing business and investing as well as to reform public administration.

She said the 2014 draft budget indicated that the salaries of government employees would stay frozen, that funds for pensions would decrease, and that the health sector would generate losses.

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