State Secretary Janko Guzijan for Economist magazine - Wage tax cut down, June 23, 2008

Can wage tax be reduced from 12 to ten percents, as suggested by Minister of Economy Mladjan Dinkic, keeping in mind the fact that the state budget is facing problems as it is, caused by higher expenditure than revenue levels?

The issue of wage tax cut down is again a live one. Wage tax reduction is one of the major economic topics not only here but in many other countries being the interest of both employed and unemployed. The employed take interest because it affects lower levels of funds’ appropriation for the state, thus increasing the earnings, and unemployed because of increased opportunities of job finding due to the positive trends on work force demand caused by lower labor costs. The politicians are very interested to achieve economic prosperity in their term of the office, so they are making efforts of balancing more favorable tax policy with projected budgetary allotments.

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State Secretary Janko Guzijan for Economist magazine - Wage tax cut down, June 23, 2008