"We wish to encourage non-budgetary, domestic and foreign investment, and in three years' time achieve the Maastricht criterion of having the national deficit account for a maximum three percent of GDP," Suker said at the first two-day International Leaders Summit, which began today.
He added that according to Finance Ministry plans, the national deficit should be 4.5 percent of GDP this year and 3.7 percent in 2005.
Speaking of the goals of the tax reform in the medium term, Suker mentioned increasing fiscal transparency, reducing burden through direct taxation, cutting budgetary spending, introducing fiscal discipline, and expediting privatisation.
Speaking of changes to income and profit taxes, Suker said the amount of monthly income not subject to taxation would be raised from 1,500 to 1,600 kuna. He also announced revoking tax on dividends.
Slovakian Prime Minister and Finance Minister Ivan Miklos presented his country's tax reform, and strongly advocated a one-rate tax system.
Miklos said Slovakia introduced a uniform 19-percent tax rate, which he added made the tax system simple, stable and favourable to investors, and considerably increased economic growth.
The summit was organised by the U.S. nongovernmental organisation World Development and Empowerment and Croatia's independent Adriatic Institute for Public Policy. In attendance are representatives of the Croatian Government, members of European parliaments, and leading economic reform experts from Europe and the United States.