The Minister of Economy, Mlađan Dinkić, said today (May 21, 2009) that the Government should finish the draft amendments to the law on tax on incomes of citizens, which should lower the taxes on fees, prior to the end of May.
He said that, if some other solution was not found, taxes on fees would be returned to the level before the changes that had been put in effect in May.
Taxes on royalties were increased from 33.6 to 50.6% for the employed and from 48.3 to 76.8% for the unemployed on May 8th.
Dinkić said that the Government had concluded at the last meeting that those rates should be lowered and ordered the Ministry of Finance to do that.
- The Ministry of Finance should find the way in which that can be done, and if it fails to find the way, taxes will be returned to their initial values, before the changes were introduced - said Dinkić.
Dinkić added that those changes should be included in the agenda of the first special meeting of the Parliament of Serbia, at the beginning of June.
Prime Minister Mirko Cvetković has ordered the Minister of Finance, Diana Dragutinović, to ask her ministry to suggest the new method for calculation of taxes on royalties.