Croatian Finance Minister Zdravko Maric on Wednesday announced a fourth round of tax cuts in accordance with the country's fiscal capacity, saying that each previous round had benefited citizens, businesses and the government budget itself.

Speaking in an interview with the RTL commercial television channel, Maric said that the task force set up for this purpose in 2016 would meet within the next few days to exchange opinions, adding that a public consultation would be held during the summer break to present new measures aimed at relieving the tax burden on businesses.

“We have been reducing taxes for three consecutive years, and it is only logical that citizens and businesses expect us to continue down this road,” the finance minister said. He noted that in the last three years the budget had been balanced, public debt and interest rates reduced and the country’s credit rating upgraded.

Maric said that everything would be done to increase personal incomes as well. “As for reducing the tax burden on labour and profit, I think we have positive effects here,” he said, stressing that they always look at the tax system in its entirety.

Commenting on the proposal by the opposition Social Democratic Party (SDP) that the non-taxable portion of personal income should be increased from HRK 3,800 (EUR 513) to HRK 5,000 (EUR 675), Maric said that during the term of the SDP government net wages had increased by about HRK 230 (EUR 31), while in the last three years they had risen by over HRK 700 (EUR 95).

He said that a real estate tax would not be introduced next year.