GOVT. FORMULATES BILL ON CHANGES TO INCOME TAX LAW

ZAGREB, Nov 28 (Hina) - Government members on Thursday refused a proposal that the ceiling income tax rate of 45% percent be applied to monthly income exceeding 30,000 kuna and will propose to parliament that the 45% tax rate be applied to monthly income exceeding 21,000 kuna. #L# The government today formulated a final bill on changes to the Income Tax Law, which along with the existing tax rates of 15, 25 and 35%, envisages a tax rate of 45%. The bill does not include a previous proposal that citizens declare their assets and changes to their assets on their own. The government had initially proposed that a tax department be set up to register the citizens' assets. The bill envisages increasing the share of units of local administration in the division of income tax revenue. Under the bill, municipalities and towns would receive 34 instead of the current 32% of income tax revenue, while counties would receive 10 instead of the current eight percent. This would bring units of local administration more than 250 million kuna of additional income tax revenue. (hina) rml sb