Between 5 and 20 percent of salary for extra tax every month?

The Serbian government's plan for the new extra tax is as follows: as of next year, the citizens whose salary is in excess of RSD 100,000 should be progressively taxed at a rate of minimum 5 percent and maximum 20 percent for those whose monthly income exceeds RSD 200,000, Blic reports.

This is how the government's plan for imposing a tax on net income on employees looks like. It is only one of the measures that the government plans to take to compensate for the loss resulting from the lowering of taxes paid by employers.

According to Blic, Ivica Dacic has confirmed that government members agree on this measure.

- It is normal that rich people pay higher taxes. It is for sure that there will be no impact on the living standard of poor citizens. I do not advocate 'suffocating' the economy and citizens with the tax reform - said Dacic.

On the other hand, Finance Minister Lazar Krstic announced Thursday that the government was considering few different options for the preparation of tax reform in Serbia, adding that all decision should be made by October.

- Tax reform is a very complex job and a serious thing, and the Finance Ministry coordinates and cooperates with other relevant institutions in that regard, but it takes time to do all that is necessary. We want to consult the Fiscal Council and the whole government - said Krstic.

Tax reform, as he pointed out, should not be discussed in the media. Due to its complexity and the effects it can have on the entire economy and system, it is necessary to subject this reform to an in-depth analysis before presenting it to the public.

Vlada Republike Srbije

Fiskalni savet Republike Srbije

Ministarstvo finansija Republike Srbije

extra tax

extra taxes

tax

income tax

tax increase

Ivica Dacic

Finance Ministry

Lazar Krstic

Fiscal Council

tax reform