Ministry prepares new "taxes for rich"

Serbia is drafting new legislation that would tax extremely wealthy citizens, especially those who list offshore islands as their places of residence.

Izvor: B92

Wednesday, 24.11.2010.

10:34

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Serbia is drafting new legislation that would tax extremely wealthy citizens, especially those who list offshore islands as their places of residence. Economists do not believe these announcements would help fill the state budget, but concede the changes could lead to a "more just" tax system. Ministry prepares new "taxes for rich" Currently, Serbia has so-called linear taxing in place, which means that the tax base is the same for all salaries. The Ministry of Finance is preparing two laws, one of which should create a basis to tax "visible forms of wealth", i.e., income and property, says Diana Dragutinovic. The minister says that the second law will be worked on "at least until April of next year", and that this legislation would concern corporate taxes. The law will look to tax owners of companies who make profit in Serbia, but are registered abroad. Although there has been speculation that the laws are being drafted as tycoons seemingly ignored President Boris Tadic and his call to "give back" to the country where they became rich, Dragutinovic insists that there is no work on changing the existing legislation of the law on "extra-profit". However, her colleague in the Cvetkovic cabinet, Economy Minister Mladjan Dinkic, says he is unaware that two new laws are being prepared by the Ministry of Finance. "Thus far, no one's mentioned a single word about that to me," Dinkic told reporters. The prime minister's cabinet also said they were not acquainted with the drafts, but they did comment on the announcements by saying that "instead of added taxation, perhaps it's best to include the rich in the country's development projects".

Ministry prepares new "taxes for rich"

Currently, Serbia has so-called linear taxing in place, which means that the tax base is the same for all salaries.

The Ministry of Finance is preparing two laws, one of which should create a basis to tax "visible forms of wealth", i.e., income and property, says Diana Dragutinović.

The minister says that the second law will be worked on "at least until April of next year", and that this legislation would concern corporate taxes. The law will look to tax owners of companies who make profit in Serbia, but are registered abroad.

Although there has been speculation that the laws are being drafted as tycoons seemingly ignored President Boris Tadić and his call to "give back" to the country where they became rich, Dragutinović insists that there is no work on changing the existing legislation of the law on "extra-profit".

However, her colleague in the Cvetković cabinet, Economy Minister Mlađan Dinkić, says he is unaware that two new laws are being prepared by the Ministry of Finance.

"Thus far, no one's mentioned a single word about that to me," Dinkić told reporters.

The prime minister's cabinet also said they were not acquainted with the drafts, but they did comment on the announcements by saying that "instead of added taxation, perhaps it's best to include the rich in the country's development projects".

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