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FinMin calls for increasing investments and job creation

Autor: half
ZAGREB, Nov 25 (Hina) - Taxes are not the problem, low salaries and low employment are, and Croatia has to fight to increase investments, create jobs and for salaries, Finance Minister Slavko Linic said on the government's website on Monday in response to questions submitted by citizens via Twitter and Facebook.

He said real estate tax would likely be introduced next year because additional taxes were necessary to collect revenues and reduce the deficit.

Linic said the government's policy was to reduce levies on the business sector to increase competitiveness and encourage the sector to start investing and hiring.

He announced that 14 parafiscal levies would be reformed next year.

Linic said the problem of low pensions, low salaries and low employment could not be solved with the tax policy but with the development policy. He said it was necessary to invest in energy and infrastructure and that "citizens must slowly turn to job creation, in which we will encourage them." This, he added, would result in a higher living standard, higher consumption and higher exports.

He went on to say that encouraging spending on credit was the previous government's policy and that the result was 350,000 jobless and nearly as many pensioners and workers.

Linic announced "huge changes" in welfare, health and education for next year, saying it would be a very tough year. He underlined the need for change and urged everyone to stand by the government in the process of tough changes in 2014.

(Hina) ha

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