LABOUR UNIONS DISSATISFIED WITH NEGOTIATIONS WITH GOVERNMENT

ZAGREB, Oct 30 (Hina) - The Government and labour negotiating teams failed to arrive at an agreement on trade unions' demands on Tuesday, the Croatian Federation of Trade Unions said on Wednesday in a statement. The teams failed even to discuss in depth many open issues, the statement said. The unions had demanded the increase of the lowest salary, the introduction of more tax brackets and more efficient measures for improving the tax collection rate. There are two income-tax brackets in Croatia and only one VAT rate (22 percent). VAT is to be applied as of January 1, 1997. "The Government representatives refused even to consider the possibility of increasing the number of tax brackets," the statement said. (hina) as 301941 MET oct 96