emg home
Tender to sell 51% stake in Telekom Srbija announced Positive growth of Veliki Majdan mine near Ljubovija Jolie now allowed to film in Bosnia Greek consulates tighten security following threat Rose-Roth seminar on topic "Southeastern Europe: Creating New Momentum" All-Russia Internet conference to open in St Petersbur Stavreski: Belgrade conference, good opportunity to compare Macedonia's results with other countries Greek PM presented five targets against unemployment University of Zadar introduces diplomacy studies Bulgaria ranks third in global broadband quality ranking Some 18% of Croatians threatened by poverty Western Balkans regional competitiveness initiative roundtable meeting Alsat: No charges against Rezart Taci Albania: Visa lifting, Fajon to visit Tirana on Saturday Gymnich model for Kosovo as CEFTA chair Shpend Maxhuni, director of Kosovo Police Vala antenna blown up in Jarinje PDK wants elections in December,foreign diplomats agree Germany returns to Serbia Holy Cross of Monastery Zica Agreement reached with a high-level Chinese delegation Cvetkovic, Tadic, Macedonian President to meet Deniau honored to be Ambassador of France to Serbia Tadic: Serbia must not stop Jeremic and Nalbandian discuss cooperation, Kosovo and N. Karabakh Belgrade WWII Liberation Day to be marked Cvetkovic, Markovic to visit PTT telecommunication centre International expert symposium "Regenerative Medicine – European tendencies" Djelic to visit Strasbourg Dacic: Publicity of police work key for public trust Djelic: Stricter control of Serbian travellers to EU Cvetkovic: More funds for poor citizens, local government, police Dinkic: Employment increase through new economic growth model Search for compromise solution for Serbia's candidacy Sutanovac: Norway supports Belgrade, Pristina talks Herman Van Rompuy starts his visit to the Western Balkans Russian Chief of Staff visits Serbia

Croatia: Higher crisis tax ends in November

19. October 2010. | 08:09

Source: Croatian Times

Some 300,000 employed people and 40,000 pensioners will have a little bit more change in their pockets as of November when the second crisis tax bracket is scheduled to end.

Some 300,000 employed people and 40,000 pensioners will have a little bit more change in their pockets as of November when the second crisis tax bracket is scheduled to end.

The government led by the Prime Minister Jadranka Kosor introduced the crisis tax in August of 2009 in other to stabilize public finances. The tax affected all incomes over 3,000 kunas (409 Euros), which hit 1.3 million people. The first lower bracket of two per cent was eliminated in July, while the higher tax of four per cent on incomes over 6,000 kunas (818 Euros) will end in November.

The crisis tax contributed 2 billion kunas (272.6 million Euros) to the state budget.

Croatian daily Vecernji List writes that the government has abandoned the tax facing criticism that the measure had actually deepened the crisis and lowered the standard of living. It negatively affected personal consumption, what some analysts consider the driving engine of growth.

An analyst from Privredna Banka Zagreb, Ana Lokin, says that the elimination of the lower tax rate in July did not have any positive effects on consumption, leading her to believe that November changes will have little consequence.

"The spending ahead of Christmas will be better than last year. That is the short-term effect," Lokin says.

But pessimism, high unemployment rates and lower salaries will stagnate the recovery of the consumption, believes Lokin, even with the end of the crisis tax in sight.


My Web

Enter text:


18. October - 24. October 2010.