ZAGREB, Dec 4 (Hina) - The Croatian parliament on Wednesday debated a final bill of amendments to the Income Tax Law, on which MPs will vote on December 6.
ZAGREB, Dec 4 (Hina) - The Croatian parliament on Wednesday debated
a final bill of amendments to the Income Tax Law, on which MPs will
vote on December 6. #L#
The government has suggested four tax rates -- 15 percent to the
salary base of 3,000 kuna, 25 percent to the salary base of 3,000 to
6,750 kuna, 35 percent to the salary base of 6,750 to 21,000 kuna,
and a new, fourth rate of 45 percent to the salary base of more than
21,000 kuna.
The government's motion that a new tax rate of 45 percent for
monthly salaries larger than 21,000 kuna be introduced has divided
MPs and their benches.
Most MPs are against the motion, explaining that a new tax rate
would punish young and educated people who carry the development of
economy on their backs.
Some opposition MPs see in the new tax rate a tendency of
introducing a kind of egalitarianism.
Although more criticism and commendations could be heard about the
draft amendments, MPs from the ranks of the Social Democratic Party
(SDP) said that the new rates were "balanced and good".
The parliament also discussed draft amendments to the Law on
Financing Regional and Local Self-Government Units. The government
has suggested an increase in the participation of local and
regional self-governments in the income tax -- from eight to ten
percent for counties and from 32 to 34 percent for towns and
municipalities.
Tax relief, primarily an increase of the untaxable part of the
salary, would mean a decrease in the budgets of counties and towns.
The government has thus suggested new solutions which would
compensate for this deficit.
MPs were mostly not satisfied because the government, as they said,
had not provided analyses which would indicate that the funds for
counties, towns and municipalities would be sufficient to cover
their increasing debts.
The parliament adopted an analysis of the State-Run Portfolio for
2001, with special reference to the results of the privatisation
process until October 2002. MPs also adopted an analysis of the work
of members of supervisory boards in state-run company managements,
and an Operative Plan of Privatisation.
EUR1 = 7.45 kuna
(hina) lml sb