Rich enjoy Serbian tax system

Serbia is a tax paradise for the rich, with income tax rates ranging from 10 to 15 percent, a Belgrade daily writes.

Izvor: Blic

Sunday, 15.02.2009.

11:14

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Serbia is a tax paradise for the rich, with income tax rates ranging from 10 to 15 percent, a Belgrade daily writes. Blic newspaper reminds that this is in stark contrast to many other countries where these rates reach 70 percent. Rich enjoy Serbian tax system The government failed to live up to its promise made in July that taxes for those who earn the most will go up to 20-40 percent. But, since the budget income remains low, a VAT hike has been hinted at – something that would additionally burden the poor. Those who report earning of up to RSD 3.3mn will pay 10 percent of that sum to the state in taxes; those who make more, look at a 15 percent tax rate. Some experts are suggesting that Serbia should introduce the "synthetic progressive" system, that would include taxes for all types of income instead of just for salaries, at a single rate that is calculated according to the taxpayer's ability. Those earning the least would thus pay no taxes, while the richest would have to pay from 40 to 50 percent of their income.

Rich enjoy Serbian tax system

The government failed to live up to its promise made in July that taxes for those who earn the most will go up to 20-40 percent.

But, since the budget income remains low, a VAT hike has been hinted at – something that would additionally burden the poor.

Those who report earning of up to RSD 3.3mn will pay 10 percent of that sum to the state in taxes; those who make more, look at a 15 percent tax rate.

Some experts are suggesting that Serbia should introduce the "synthetic progressive" system, that would include taxes for all types of income instead of just for salaries, at a single rate that is calculated according to the taxpayer's ability.

Those earning the least would thus pay no taxes, while the richest would have to pay from 40 to 50 percent of their income.

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