GERMANS SUPPORT CROATIAN UNION CAMPAIGN FOR VARIED VAT RATES

( Editorial: --> 6487 ) ZAGREB, 22 Jan (Hina) - Based on its own experience, the German Federation of Trade Unions (DGB) supports the Federation of Independent Trade Unions of Croatia (SSSH) in its demands for varied rates of Value Added Tax (VAT) to be introduced, DGB representatives said on Thursday at the end of a three-day visit to Croatia. DGB executive board member Regine Goerner said Germany had two rates of VAT - seven per cent for goods of mass consumption, books, newspapers and medicines, and 15 per cent for other products. Expressing surprise that Croatia, despite the fact it was striving to establish a social-market economy, was taxing basic foodstuffs and luxury goods at the same rate, Goerner said this would result in lower living standards for the poorest parts of the population. The representative of the largest German union organisation, which has nine million members, also sympathised with Croatian workers who are not receiving their wages or whose pay arrives late. "This actually means that workers are giving interest-free credit to their employers, who at the same time are reducing their wages, which is inadmissible for market economies," Goerner said. She added that such an "undeveloped payment moral" discouraged foreign investment in the Croatian economy. (Hina) jn mb 222106 MET jan 98