The Croatian parliament on Thursday continued its session with a debate on a government-sponsored proposal to cancel, as of July 1, extra tax charged on incomes ranging from HRK 3,000 to 6,000.
The government has proposed amending two laws under urgent procedure - one regulating special tax on incomes from freelancing and other incomes, and the other regulating special tax on salaries, pensions and other incomes.
A state secretary at the Finance Ministry, Ivica Mladineo, introduced the government's bills, saying that they were aimed at relieving the burden on the most vulnerable social groups having the most difficulty coping with the impact of the economic crisis.
Cancelling the lower, 2-percent special tax rate, will relieve the burden on 720,000 workers and 190,000 pensioners. This way, HRK 480 million will be released by the end of the year.
Last summer the government introduced special taxes for all incomes exceeding HRK 3,000, with incomes ranging from 3,000 to 6,000 kuna being taxed at a two-percent rate, and those amounting to more than HRK 6,000 being taxed at a four-percent rate.
By cancelling the lower special tax rate the government wants to stimulate spending and economic development and protect jobs.
