The lower 2-percent rate of the so-called crisis tax on incomes, which was introduced on monthly salaries ranging between HRK 3,000-6,000 last summer, will be abolished as of 1 July, while the higher rate of 4 percent levied on monthly incomes exceeding HRK 6,000 will be annulled as of 1 November this year, the Croatian parliament decided on Friday.
A majority of lawmakers today adopted the government-sponsored amendments to the crisis tax legislation, with opposition Social Democrats sustaining from voting as they proposed the abolishment of both crisis tax rates on 1 May. However, their amendment was not supported by the parliamentary majority.
The annulment of 2-percent tax rate refers to salaries of 720,000 workers and pensions of 190,000 pensioners.
The legislation adopted last summer on this extra tax envisaged the collection of the special crisis taxes by the end of 2010, but this was changed with today's amendments.
