Abolishing the four-percent crisis tax on salaries exceeding HRK 6,000 as of 1 November 2010 is one of the measures of the government-sponsored Economic Recovery Programme that was presented by Prime Minister Jadranka Kosor on Monday.
The programme was supported by the coalition partners, Kosor told a news conference.
The measures that Kosor presented today refer to the fiscal policy, the functioning of the public administration, state property management, judiciary reform, social security and pension systems, etc.
Concerning the fiscal system, Kosor announced the cancellation of tax relief except in investments in research and development. She also said income tax would be reduced to three rates -- 12, 25 and 40 percent.
Kosor also announced the reduction of non-tax levies, such as water management levies, forestry management levies etc.
The programme envisages a five-percent personnel cut in the public administration, as well as changes in the territorial organisation,
The PM announced a revision of privileged pensions gained under special conditions, cuts and possible abolishment of some pensions.
Kosor said that by entering the European Union, Croatia would adopt a law on fiscal responsibility with a limited share of fiscal deficit aimed at gradual reduction of the budget deficit in Gross Domestic Product to three percent.
She said the government would analyse the results of the measures once a month.
