ZAGREB, Dec 6 (Hina) - The Croatian parliament on Monday adopted amendments to the Income Tax Law by a majority vote, which, according to the government, will introduce a series of tax benefits but, according to the Opposition, will
put even more tax burden on citizens.
ZAGREB, Dec 6 (Hina) - The Croatian parliament on Monday adopted
amendments to the Income Tax Law by a majority vote, which,
according to the government, will introduce a series of tax
benefits but, according to the Opposition, will put even more tax
burden on citizens. #L#
The government rejected a series of amendments proposed by MPs, of
which the most contentious was the one submitted by the Croatian
Democratic Union (HDZ) under which 200,000 citizens from areas of
special state concern, taxwise, were not be treated as other
citizens.
The benches of the HDZ, the Social Liberals, the Istrian Democratic
Assembly, the Democratic Centre, and the Croatian Bloc criticised
the government's policy towards returnees, which they said had
started with amendments to the Law on Areas of Special State
Concern, namely formerly war-struck areas.
Opposition MPs claim the amendments proposed by the government will
reduce the wages of citizens from those areas by more than ten
percent.
Responding to the criticism, Finance Minister Mato Crkvenac said
the government's solutions would enable citizens in those areas to
live better.
The minister also said he could not accept claims that the
"government is waging a policy which will make it impossible for
those citizens to survive."
The amendments to the Income Tax Law bring a series of tax benefits:
the non-taxable part of the monthly income is raised from 1,250 to
1,500 kuna, while there are equated tax benefits of up to 12,000
kuna annually for citizens buying apartments through loans,
refurnishing apartments, for citizens renting apartments, and for
the purchase of orthopaedic aides.
The amended law stipulates four income tax rates: 15 percent on
monthly tax bases up to 3,000 kuna, 25 percent on bases between
3,000 and 6,750 kuna, 35 percent on those between 6,750 and 21,000
kuna, and a new, fourth rate, of 45 percent, on tax bases exceeding
21,000 kuna. In Croatia there are 2,094 people whose monthly income
exceeds said amount.
Parliament today also adopted changes to the law on the Croatian
Academy of Sciences and Arts (HAZU), and sent into second reading a
bill of amendments to the Civil Procedure Law and a wine bill.
(EUR1 = 7.4 kuna)
(hina) it/ha sb