President Kolinda Grabar-Kitarovic on Saturday spoke favourably of the set of tax reform bills which the government had sent to parliament for adoption, particularly praising the move to ease the tax burden on wages.

In addition to tax reforms, the government on Friday also proposed an increase in the total annual amount of non-taxable receipts, from HRK 2,500 (EUR 340) to HRK 7,500 (EUR 1,000).

“I think we are going in the right direction. Any easing of the burden on taxes is very good and I welcome it,” Grabar-Kitarovic told reporters in Paris where she would attend a ceremony marking the centenary of the end of the First World War.

“I think it’s much better to increase wages than to reduce VAT, because if wages are increased, people can decided for themselves what they will do with that money,” the president added.

She expressed confidence that there would be further tax breaks.

“I would like us to catch up with those countries that bring in tax breaks to attract foreign and domestic investors and enable businesses to invest more of their profits in innovation, new products and the like,” Grabar-Kitarovic said.

(EUR 1 = HRK 7.4)

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