- Source: Politika
- News clipping (1)
Serbia continues its good economic performance contributed... More info
The Fiscal Council estimates that the payroll tax cut could be higher than 1%, as planned for next year's budget. While this is a step in the right direction, they estimate that the disburdening could and should be much greater. However, wage expenditures have prevented a stronger reduction in corporate taxes, which will reach 61% in 2020. The Fiscal Council has proposed a reduction of contributions and labor taxes by around EUR 150 million. The government, however, opted for an excessively and economically unproductive increase in public sector wages of 9.6 %, leaving half of that in tax and contribution cuts. The Fiscal Council believes that a two-year reduction in the fiscal disburdening could be an important stimulus to the economy (down from 63 % to 58 %).