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PARL. OPPOSITION SLAMS DRAFT INCOME TAX ACT

ZAGREB, Nov 17 (Hina) - The opposition in the Sabor on Wednesdayrefused to endorse a draft act on income tax presented by FinanceMinister Ivan Suker, labelling it an attempt to delude the publicthrough less important tax relief proposals.
ZAGREB, Nov 17 (Hina) - The opposition in the Sabor on Wednesday refused to endorse a draft act on income tax presented by Finance Minister Ivan Suker, labelling it an attempt to delude the public through less important tax relief proposals.

The opposition also did not accept the minister's explanation that what the Ivo Sanader cabinet was proposing now was all that could be done according to real possibilities.

Under the draft act, the nontaxable part of the monthly income would rise from 1,500 kuna to 1,600 kuna, and the total tax relief in a year can reach 12,000 kuna. Rates of income tax on different amounts of salaries would remain the same, namely the income tax on salaries up to 3,200 kuna would be 15 percent, the next rate is 25 percent for salaries up to 8,000 kuna, a 35-percent rate is imposed on salaries from 8,000 to 22,400 kuna, and a 45-percent rate on salaries above 22,400 kuna.

One of the novelties is the introduction of the category 'other kind of income', which is earned by athletes, singers, and artists whose income would be taxed under the relevant rules.

The finance minister also proposed the revocation of taxes on dividends as a measure aimed at attracting more investors both from Croatia and abroad.

The opposition claimed that the proposal was far from what the ruling Croatian Democratic Union (HDZ) had pledged to do in the tax reform.

The Croatian parliament will resume its 11th session tomorrow with a debate on the government's proposal for the state budget in 2005.

The Sabor speaker expects that the debate could last until the early hours of Friday.

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