Finance Minister Šuker says ensuring liquidity is fundamental goal

The basic goal of government activities in combating the crisis is ensuring liquidity, which is the foundation for a functioning economy in times of crisis, Finance Minister Ivan Suker said on Tuesday.

He was speaking at a meeting with entrepreneurs organised by the Croatian Employers Association.

If system liquidity is ensured, entrepreneurs will have no problem meeting their obligations to the state and other entrepreneurs, Suker said, adding that VAT revenue in the last eight weeks had been returning to last year's level.

The liquidity of budgetary beneficiaries and state companies has improved considerably and this, alongside other government measures, of which the recent budget revision is the most important, indicates that Croatia will successfully issue bonds on the international market, as does the positive assessment of the International Monetary Fund delegation, which described the revised budget as realistic, said Suker.

He reminded entrepreneurs that they could obtain favourable Croatian Bank for Reconstruction and Development loans, and said the government estimated these loans would amount to HRK 4.2 million this year. "We hope we will be able to ensure that," he said.

Speaking of a tax reform, Suker announced the alignment of laws on profit and income tax with European Union guidelines, as well as amendments to the law on excise taxes and the law on companies.

Asked about the possibility of offsetting claims of the private and public sectors, he announced that it was being considered.

Speaking to the press afterwards, Suker said he was not sure the new excise tax law would lower excise on alcoholic drinks, and added that a zero VAT rate on some products remained open for discussion.

He also said it was very likely that Croatia would not introduce excise on gas and electricity, and that the possibility of introducing taxes on betting and games of chance would be considered during the adoption of new laws on VAT and games of chance.

 (HINA)

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