ZAGREB, Nov 7 (Hina) - The Croatian national parliament's House of Counties on Tuesday accepted only a half of 'the package of tax acts'. The upper house, where the Croatian Democratic Union (HDZ) has a majority of seats, did not give
the green light to a draft act on income and profit taxes, but it endorsed a draft general taxation act and a draft act on taxation counsellors, after a debate which followed an explanation given by Deputy Finance Minister Damir Kustrak. Kustrak told MPs that the general taxation act and the act on counsellors should help arrange relations between tax payers and the tax administration. He said one of the new things brought by the general taxation act would be that an appeal lodged against the ruling of a municipal court could postpone the enforcement of the court's decision, and this move put tax payers on the equal footing with the tax administration. The other ac
ZAGREB, Nov 7 (Hina) - The Croatian national parliament's House of
Counties on Tuesday accepted only a half of 'the package of tax
acts'.
The upper house, where the Croatian Democratic Union (HDZ) has a
majority of seats, did not give the green light to a draft act on
income and profit taxes, but it endorsed a draft general taxation
act and a draft act on taxation counsellors, after a debate which
followed an explanation given by Deputy Finance Minister Damir
Kustrak.
Kustrak told MPs that the general taxation act and the act on
counsellors should help arrange relations between tax payers and
the tax administration.
He said one of the new things brought by the general taxation act
would be that an appeal lodged against the ruling of a municipal
court could postpone the enforcement of the court's decision, and
this move put tax payers on the equal footing with the tax
administration.
The other act introduces a new occupation - counsellor on tax issues
- who may be authorised by a tax payer to fulfil and sign the
latter's tax report. The counsellor will be fully responsible for
his work in comparison to the existent solution when auditors-
general have limited liability. Kustrak stressed that tax payers
would not have to use the service of tax counsellors if they did not
want it.
Commenting on the draft profit tax act, he said a reduction of the
tax base was planned in the case of newly-employed persons, the
purchase of equipment and gifts. The current tax rate would be cut
from 35 to 25 percent and a statutory fixed annual rate of 3.5
percent would be introduced.
The act provides for the introduction of three rates (15, 25, 35
percent) instead of the current two rates (25 and 35 percent). The
highest rate will be applied for salaries exceeding 6,000 kuna.
Dividends will be calculated into income and they will be taxed by
15 percent.
After Kustrak's explanation, the HDZ bench criticised the draft
income and profit tax acts.
According to Ivana Sucec-Trakostanec, those proposals are more
complicated and less transparent than the laws currently in force.
The taxation of dividends could discourage the poorly developed
share-holding, she feared.
She also complained that the new laws could create new costs in the
tax administration and cause problems for citizens in their
attempts to adjust themselves to a new situation.
The bench of the Social Democratic Party (SDP) supported the entire
package. On behalf of this bench, Zlatko Komadina said the new acts
created pre-conditions for cuts in the price of work, creation of
new jobs and investment and eventually for greater economic
growth.
The bench of the Liberal Party (LS) had a similar opinion.
Wrapping up its 48th session the upper house supported an
initiative of its members about changes in the act on fire-fighting
and on public roads.
(hina) ms