( Editorial: --> 6456 )
ZAGREB, 22 Jan (Hina) - The Consumer Support Commission, which the
Croatian Government formed to monitor price changes following the
introduction of Value Added Tax (VAT), assessed on Thursday that
food had become dearer more than was justified.
At the same time the prices of products, which were expected to
become cheaper following the introduction of VAT, were not lowered
as much as they should have been.
The new taxation system in Croatia came into force on 1 January
1998. The turnover tax on goods of 15 per cent and the turnover tax
on services of 10 per cent were replaced with the VAT at the flat
rate of 22 per cent.
Assistant Finance Minister and Commission chairwoman Martina Dalic
told a press conference in Zagreb that the Commission expected food
prices not to increase more than two per cent on average, while the
prices of other products should fall in the range of four to 15 per
cent.
Reminding that the whole facts would be released by the State
Statistics Bureau, Dalic presented journalists with Finance
Ministry data obtained while following food prices in two stores in
Zagreb.
According to the information, food prices in Zagreb on 22 January
were 5.8 per cent higher than on 1 December last year. The greatest
increase, 7.04 per cent, was recorded on 15 January, Dalic said.
The Commission concluded that no one in the chain of production and
trade and services turnover had passed on to consumers even one
positive effect of the introduction of VAT.
(Hina) jn mb
221950 MET jan 98
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