The head of the association of cities and towns in Croatia, Vojko Obresnel, said that despite efforts which have so far been made in this sector, the level of decentralisation in Croatia is still unsatisfactory, and urged drastic changes in the tax payment system given that currently 74 percent of collected taxes remains in the state budget and 22 percent goes to cities and municipalities, with a mere four percent to counties.
The European Commission Delegation head, Vincent Degert, said that the EC had decided to help Croatia with 9.5 million kuna for a fiscal decentralisation project and with about 10 million kuna for administrative decentralisation.
Finance Minister Ivan Suker said that the share of the state in the income tax was cut from 60 percent in 2001 to the current 24.6 percent.
(1EUR = 7.4 kuna)