ZAGREB, September 27, 2018 – Finance Minister Zdravko Marić said in parliament on Thursday the point of the tax reform was a simpler, more transparent and more just tax system which would benefit entrepreneurs, investors and taxpayers, but the opposition vehemently called him out. “This is the third round of a single tax reform,” he said, adding that the reform was launched because of a high public debt.
The latest round of the reform comprises nine bills. This morning MPs were discussing bills of amendments to the VAT law and the real estate tax law, and a bill on excises.
Marić said the first tax reform round focused on cutting income and profit taxes because the government knew that would have the biggest positive effect on taxpayers and public finances. “Today we are embarking on additional relief for the economy and citizens totalling 2.7 billion kuna. In the first two tax reform rounds, the tax relief amounted to 3.6 billion kuna.”
Amendments to the VAT law envisage expanding, as of next year, the application of a 13% rate on nappies, meat, fish, vegetables, fruit and eggs, as well we cutting the general VAT rate of 25% to 24% as of 2020.
Gordan Maras of the opposition Social Democratic Party called out Marić for “guillotining” entrepreneurs as a result of which “thousands of citizens are leaving for Ireland and entrepreneurs are closing their businesses.”
Branimir Bunjac of the opposition Živi Zid criticised the prime minister for saying that he advocated a more just system. “Is it just that salaries are going up only for the richest in society, managers and politicians? The prime minister’s salary will go up by 4,000 kuna and a citizen’s by 30.”
“If you don’t pay income tax today, there is no change that can raise your net salary. You single out the prime minister, but do you know why his salary has gone up? Because his second child has been born,” said Marić.
Hrvoje Zekanović of the opposition Hrast party asked Marić if he knew that one could not live on a minimum wage of 2,751 kuna. Maric said no taxes were paid on minimum wage.
