MOST wants to prevent an increase in net salaries of ministers and MPs after income tax rates fall on 1 January.
Prime Minister and HDZ president Andrej Plenković commented on Friday on MOST’s announcement that it would propose a legislative amendment which would prevent net salaries of MPs and ministers from increasing after lower income tax rates come into effect on 1 January, reports Večernji List on November 11, 2016.
Plenković said that he was “against demagoguery and populism”. “I will be firm. I think it is natural if some parties want to submit such amendments, they are entitled to. My position is that I am against it”, said Plenković.
Plenković also commented on allegations that HDZ had betrayed its voters by deciding against lowering the general VAT rate in 2018. “HDZ has not betrayed its voters and has not broken its promise. The tax reform proposal is comprehensive, and we talked about corporate tax, income tax and the reduction of VAT rate in the second year of the term. HDZ does not have absolute power and after we negotiated with our coalition partners, after we listened to messages from our social partners, especially trade unions, we have kept 95 percent of original proposals”, said Plenković. “We are working to fulfill what we have promised. How and when during the next four years we will achieve our goals, that will depend on the overall economic growth and the impact of tax reform on the Croatian economy”, said Plenković.
MOST leader and Speaker of Parliament Božo Petrov announced that his party would propose an amendment to the tax reform plans to reduce gross salaries of state officials, so that they would not get an increase after the new, lower income tax rates come into effect in January. He added that it was his hope that all officials would support their amendment.
Finance Minister Zdravko Marić also commented on Petrov’s statement. “It is their legitimate right to submit such an amendment. If you ask me, I will tell you very clearly that this tax reform is too large to be connected with any populist or demagogic principles”, said Marić.
Representatives of the opposition parties also said they would submit a similar amendment and accused MOST of trying to pretend that it is part of opposition, instead of the ruling coalition. According to them, if MOST does not want to allow for officials’ salaries to increase, it should incorporate such provision in the government’s proposal and not submit it separately during the parliamentary procedure, as if it were an opposition party.
Without the amendment, it is estimated that ministers and MP’s net salaries would increase by about 2,000 kuna.
