Relieving the economy, increasing the competitiveness of Croatian products, and increasing tax revenue are the main reasons behind the intention to impose a real estate tax, Finance Minister Slavko Linic said in Varazdin on Monday, presenting a draft real estate tax law to representatives of local and regional self-governments.
Linic expects the bill to be put to parliament in late March and once again reiterated that the real estate tax would not further encumber citizens, except those whose properties were not in use.
He also reiterated that the real estate tax should replace obsolete local rates and that it would be collected by local self-governments.
Linic said the tax reform should consist of three stages and that it was expected to relieve the economy, reduce the price of labour and increase the competitiveness of Croatian goods.
A higher real estate tax revenue would make it possible to reduce health care contributions from 13 to seven per cent, the minister said, adding that the property tax accounted for less the one per cent of tax revenues - HRK 448 million in 2011.
That year the government collected HRK 47 billion in labour taxes and HRK 52 billion in taxes in the trade in goods and services.
Linic said the European Commission too recommended collecting taxes from properties, especially those not in use.
He said that in drawing up the real estate tax bill, every effort was taken not to further encumber citizens. He said the next step was to cooperate with the Chamber of Commerce and employers in seeking a just solution to tax real estate in their sector.
Linic was also asked by the press to comment on farmers' accusations that his arrogance was one of the reasons for their protests.
He said he did not accept ultimatums and that he did not have a good opinion of "people who are so arrogant to block traffic and disturb others... They have no reason to protest."
Linic said he was in touch with the Agriculture Ministry and that they were trying to solve farmers' problems.
