INDEPENDENT TRADE UNIONS SUGGEST 49% TAX RATE FOR HIGH SALARIES

ZAGREB, Oct 23 (Hina) - The Federation of Independent Trade Unions of Croatia (SSSH) has proposed that another tax rate of 49 percent for gross salaries exceeding 10,000 kuna be added to changes to the Law on Income Tax, SSSH president Davor Juric said. The SSSH is only partly satisfied with the government's proposal on three tax rates, because it supports progressive taxation of salaries, for which five tax rates would be a more appropriate solution, Juric told reporters in Zagreb on Monday. "I believe the Government will forward this proposal to the Economic-Social Council, so that the social partners could consider our suggestion that a more just tax system be introduced by introducing a 49 percent tax rate on high wages," Juric said. The SSSH will also request that as of New Year the non-taxable income be increased from the current 1,250 kuna to the level of the lowest salary of 1,700 kuna, he added. The Croatian government last Thursday forwarded into parliamentary procedure bills on profit tax and income tax. The bill on income tax envisages, among else, the introduction of three income tax rates (15, 25 and 35 percent). (hina) rml