Finance minister announces new taxes, salary freeze

Finance Minister Diana Dragutinović has announced the introduction of a new income tax base band of RSD 12,000, which will be subject to six percent taxation.

Izvor: B92

Thursday, 26.03.2009.

15:36

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Finance Minister Diana Dragutinovic has announced the introduction of a new income tax base band of RSD 12,000, which will be subject to six percent taxation. Dragutinovic said that the government was due to adopt a budget review in three weeks’ time, which would then be submitted for procedure in parliament. Finance minister announces new taxes, salary freeze She said that the temporary six percent tax on salaries and pensions would be introduced on May 1, with the non-taxable band rising from the current RSD 5,980 (around EUR 60) to RSD 12,000 (around EUR 120). The move is expected to lead to a 3.73 percent drop in the average salary. At the same time, the minister announced a freeze on all public sector salaries, the introduction of a property tax and a new tax on luxury vehicles, as well as the introduction of a temporary capital gains tax. Diana Dragutinovic (Tanjug, archive)

Finance minister announces new taxes, salary freeze

She said that the temporary six percent tax on salaries and pensions would be introduced on May 1, with the non-taxable band rising from the current RSD 5,980 (around EUR 60) to RSD 12,000 (around EUR 120).

The move is expected to lead to a 3.73 percent drop in the average salary.

At the same time, the minister announced a freeze on all public sector salaries, the introduction of a property tax and a new tax on luxury vehicles, as well as the introduction of a temporary capital gains tax.

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