ZAGREB, June 14 (Hina) - A bill on investment incentives places Croatia in the position of advantage over other countries in transition such as Hungary or the Czech Republic when possible foreign investors should opt for some of these
European states in the future, the Croatian Economy Minister Goranko Fizulic said explaining the bill to the Sabor's House of Representatives.
ZAGREB, June 14 (Hina) - A bill on investment incentives places
Croatia in the position of advantage over other countries in
transition such as Hungary or the Czech Republic when possible
foreign investors should opt for some of these European states in
the future, the Croatian Economy Minister Goranko Fizulic said
explaining the bill to the Sabor's House of Representatives.#L#
On Wednesday the national parliament's lower house endorsed
unanimously this law in the first reading.
The Government's intention is to push Croatia in the group of first
countries according to foreign investments per capita, the
Minister said.
He cited record-high unemployment and poor results in Croatia's
exports as the country's key problems. These problems can be solved
only by foreign investors as they are only able to employ more
people and make it possible for the country to raise exports. That's
why this bill is oriented towards big investors, Fizulic said.
Even though there have already been some big companies in Croatia,
they have bought the existing firms and plants but have not built
new ones. We must first attract a big foreign company that will
build a firm here and subsequently other foreign companies will
come, the Economy Minister predicted.
In order to achieve this aim we are going to offer them stimulation
such as the usage of real estate under favourable conditions and
assistance in job creation. We shall set up two funds to implement
the aforementioned measures efficiently - the Real Estate Fund and
Job Creation Fund, he explained.
Investors who invest at least six million kuna (1.5 million German
marks) will be entitled to incentive measures.
Commenting on tax incentives, Fizulic said that for investments
worth at least 20 million kuna (five million marks) profit tax will
be paid at the rate of seven percent in the 10-year-long period
since the start of investing, provided that the investor also
employs at least 30 workers. The higher investment and more jobs,
the lower tax rates, he concluded.
On Wednesday the lower house endorsed a bill on ecological
production of agricultural produce, in the first reading.
(hina) mm ms