Govt. considering introduction of "solidarity tax"

BELGRADE Ivica Dacic stated on Tuesday that the government is considering introducing "solidarity tax" on highest public sector salaries. But decisions on the issue "have not been adopted yet," he was quoted as saying. Govt. considering introduction of "solidarity tax" "This would imply that a certain percentage - 8, 10 or 12 percent - would be set aside from a salary of, say, RSD 100,000 (EUR 870) as an act of solidarity,” he said. Dacic noted that according to the proposition, a higher sum, between 20 and 30 percent, would be set aside by ministers, prime minister, deputy prime ministers, as well as MPs and the president. “We should show that we are starting from our own example in this way,” Dacic said and noted that the proposition would be discussed in the next few days and that no decision on this matter has been adopted yet because there are some different concepts. Previously, Dacic suggested that his government could reduce highest salaries in the public administration sector. (Tanjug) "Not enthused" First Deputy Prime Minister Aleksandar Vucic stated on Wednesday that he is not enthused by the idea concerning the introduction of the solidarity tax, but the government has to achieve the two percent figure necessary for the reduction of the fiscal deficit. “We will adopt the decision in the next two days,” Vucic told reporters after the opening of the Magna Seating company in Odzaci. “We cannot spend more than we earn and it is unnatural for the public sector, as a beneficiary of the budget, to have salaries 30 percent higher than those in the private sector,” Vucic said and added that this is neither realistic nor possible. The deputy prime minister said that employment constitutes the most important task of the Serbian government, and pointed to the importance of the opening of Magna Seating which will be manufacturing textile and leather upholstery for the needs of the automotive industry. Thanks to the EUR 0.5 million worth of investments, the plant will open 450 jobs. Responding to reporters' questions, Vucic confirmed that the decision on the law on funding of the Autonomous Province of Vojvodina would be adopted soon. Tanjug

Govt. considering introduction of "solidarity tax"

"This would imply that a certain percentage - 8, 10 or 12 percent - would be set aside from a salary of, say, RSD 100,000 (EUR 870) as an act of solidarity,” he said.

Dačić noted that according to the proposition, a higher sum, between 20 and 30 percent, would be set aside by ministers, prime minister, deputy prime ministers, as well as MPs and the president.

“We should show that we are starting from our own example in this way,” Dačić said and noted that the proposition would be discussed in the next few days and that no decision on this matter has been adopted yet because there are some different concepts.

Previously, Dačić suggested that his government could reduce highest salaries in the public administration sector.

"Not enthused"

First Deputy Prime Minister Aleksandar Vučić stated on Wednesday that he is not enthused by the idea concerning the introduction of the solidarity tax, but the government has to achieve the two percent figure necessary for the reduction of the fiscal deficit.

“We will adopt the decision in the next two days,” Vučić told reporters after the opening of the Magna Seating company in Odžaci.

“We cannot spend more than we earn and it is unnatural for the public sector, as a beneficiary of the budget, to have salaries 30 percent higher than those in the private sector,” Vučić said and added that this is neither realistic nor possible.

The deputy prime minister said that employment constitutes the most important task of the Serbian government, and pointed to the importance of the opening of Magna Seating which will be manufacturing textile and leather upholstery for the needs of the automotive industry.

Thanks to the EUR 0.5 million worth of investments, the plant will open 450 jobs.

Responding to reporters' questions, Vučić confirmed that the decision on the law on funding of the Autonomous Province of Vojvodina would be adopted soon.