ZAGREB, July 29, 2019 – The leaders of the SSSH, NHS and MHS union federations said on Monday the fourth tax reform round benefited employers while leaving workers crumbs.
Speaking at a press conference, SSSH president Mladen Novosel said “employers will be least dissatisfied with this fourth relief round.” He called as populist the measure under which workers under 25 would be exempt from paying income tax and those aged 25-30 would pay 50% income tax, saying it would not stop young people from emigrating, while discriminating against other workers.
NHS president Krešimir Sever said the measure was being adopted without concrete calculations and that it would cut the revenues of local communities which, he added, might cut kindergarten subsidies, increase utility prices and introduce local taxes.
He said the government was currying favour with employers at any cost, at the expense of pension and health insurance as well as workers with the lowest or average wages.
MHS economist Matija Kroflin said the fourth tax reform round would not stimulate GDP growth or result in higher salaries or lower prices.
“Nearly 3 billion kuna of the estimated 3.7 billion kuna (tax reduction) refers to the reduction of the general VAT rate from 25% to 24% and to the VAT reduction for the hospitality industry,” he said, adding that said three billion would end up in the pockets or business and restaurant owners.
The unionists called on the government to raise the non-taxable income from 3,800 to 4,370 kuna, which is 60% of the median pay, and the minimum wage to 4,370 gross kuna, and to reintroduce a 12% income rate on salaries of up to 17,500 kuna.
More news about taxes can be found in the Business section.
