Decrease of the income taxation from 12 to 10% - The Government announces changes in 6 taxation laws

Finance and Economy Minister Mladjan Dinkic said that immediately after the holidays the Serbian Government would suggest a reduction in payroll taxes from 12 to 10%, increase in pension insurance contributions from 22 to 24% and raising the limit for taxation from three to six million dinars.

- The aim of the new package of tax laws is primarily to help crafters and small and medium enterprises. We plan to raise the limit of taxation from three to six million, which will make life easier for tradesmen and entrepreneurs - said Dinkic for the holiday edition of "Blic".

- Also, we're going to relieve the economy with around two billion annually by decreasing income tax from 12 to 10% and by increasing the amount of untaxed income from 8,700 to 11,000 dinars - said the Minister of Finance and Economy.

At the same time, he said, we will increase the pension insurance contributions, from 22 to 24%.

- Therefore, the effect of the tax reform will be increase of the revenues of the pension fund, a reduction in transfers from the budget to the pension fund, and at the same time relieving of the economy, as we are raising the amount of untaxed income - said Dinkic.

- The greatest relief will be given to those with the most difficulties, who are currently paying minimum wages - said Dinkić, noting that six of the tax laws will be changed.