VAT HAS INTRODUCED ORDER INTO BUSINESS - MATESA

( Editorial: --> 2548 ) ZAGREB, March 26 (Hina) - The Croatian Government on Thursday adopted and sent into parliamentary procedure the final bill on pension insurance. The Government also adopted a report by the Consumers Support Commission on the movement of prices following the introduction of Value Added Tax (VAT). Finance Minister Borislav Skegro said that the beginning of a reform, envisaged for the next year, would require US$385 to US$460 million from the state budget. Skegro informed Government members about the report of the Consumers Support Commission on the movement of prices since the introduction of VAT, at the beginning of this year. According to the report, by March 12, prices of goods and services registered a 2.6% increase compared to 31 December last year. Prices of medicines, children's food and communal services registered the highest increase. Prices of clothing, footwear, household appliances and furniture were reduced. Skegro said that the Consumers Support Commission followed prices in 21 county capitals, monitoring 58 articles and services. Premier Zlatko Matesa said he had some justified objections, but added that it was visible from the report that attacks on the Government because of introduction of VAT were unfounded. It is obvious that VAT has introduced order into business, black marketeering has been reduced and that is exactly our goal, said Matesa. (hina) jn rm/mrb 261631 MET mar 98