Minister in favor of lower income tax

The priority of Serbia's next government should be to reduce taxes and contributions on salaries from 64 to 40 percent, says Minister Nebojsa Ciric. Ciric, in charge of the Economy and Regional Development portfolio in the current cabinet, spoke for Tanjug news agency on Thursday in Belgrade. Minister in favor of lower income tax Income taxes are exceptionally high, which forces certain employers to pay their employees as if they were black market work force, Ciric noted and added that workers in the gray area have no rights to pension and health insurance or a possibility to take out loans. The minister stated that delaying the implementation of the law on regular payment of obligations will not have a positive effect on the economy, and expressed hope that the new convocation of the parliament and government would be set up as soon as possible and that one of the first laws to be tabled in the agenda of the new parliament convocation would refer to shortening the payment deadline. The law cannot be applied retroactively and it would not cover old debts but it would accelerate the flow of money and improve solvency for all future transactions, the minister said and expressed belief that this would be a positive move for the economy. Ciric underscored that the new government convocation will need to revise the possibility of prompt realisation and completion of restructuring for certain public enterprises and to establish which companies have a future and which do not. The new government has to continue the already launched investment projects and open new ones because they are the economy's driving force, as in the case of the copper mining and smelting complex Bor, Ciric said. He underscored that the outgoing government has done a lot to ease the negative effects of the global economic crisis in Serbia back in 2009 and improve the economy's solvency through certain measures, and recalled that the country experienced recession in 2009 only and that it recorded growth in 2010 and 2011. In 2011, Serbia recorded surplus in commercial exchange with CEFTA countries, and for the first time scored a surplus in trade with Croatia, he recalled. As some of the greatest examples of success which the government achieved, Ciric listed the decision of Italian Fiat to invest in Serbia and added that launching car production in the Kragujevac plant in itself constitutes the biggest industrial project and investment in the past 20 years. Although strikes were held in certain companies, there were no mass protests or social unrests, Ciric noted. Another good move was the fact that Serbia was one of the first countries in Europe to close a new arrangement with the International Monetary Fund, he stated. As the greatest failures of the outgoing government, Ciric listed the problem of the growing unemployment rate which reached 24 percent of the economically active population, and noted that this comes as a direct consequence of the global economic crisis. Nebojsa Ciric (Tanjug) Tanjug

Minister in favor of lower income tax

Income taxes are exceptionally high, which forces certain employers to pay their employees as if they were black market work force, Ćirić noted and added that workers in the gray area have no rights to pension and health insurance or a possibility to take out loans.

The minister stated that delaying the implementation of the law on regular payment of obligations will not have a positive effect on the economy, and expressed hope that the new convocation of the parliament and government would be set up as soon as possible and that one of the first laws to be tabled in the agenda of the new parliament convocation would refer to shortening the payment deadline.

The law cannot be applied retroactively and it would not cover old debts but it would accelerate the flow of money and improve solvency for all future transactions, the minister said and expressed belief that this would be a positive move for the economy.

Ćirić underscored that the new government convocation will need to revise the possibility of prompt realisation and completion of restructuring for certain public enterprises and to establish which companies have a future and which do not.

The new government has to continue the already launched investment projects and open new ones because they are the economy's driving force, as in the case of the copper mining and smelting complex Bor, Ćirić said.

He underscored that the outgoing government has done a lot to ease the negative effects of the global economic crisis in Serbia back in 2009 and improve the economy's solvency through certain measures, and recalled that the country experienced recession in 2009 only and that it recorded growth in 2010 and 2011.

In 2011, Serbia recorded surplus in commercial exchange with CEFTA countries, and for the first time scored a surplus in trade with Croatia, he recalled.

As some of the greatest examples of success which the government achieved, Ćirić listed the decision of Italian Fiat to invest in Serbia and added that launching car production in the Kragujevac plant in itself constitutes the biggest industrial project and investment in the past 20 years.

Although strikes were held in certain companies, there were no mass protests or social unrests, Ćirić noted.

Another good move was the fact that Serbia was one of the first countries in Europe to close a new arrangement with the International Monetary Fund, he stated.

As the greatest failures of the outgoing government, Ćirić listed the problem of the growing unemployment rate which reached 24 percent of the economically active population, and noted that this comes as a direct consequence of the global economic crisis.