Finance Minister Zdravko Maric said on Wednesday it would be known in a few days if the income tax burden would be cut again and if workers could expect higher wages as early as August.

Responding to questions from the press ahead of a cabinet meeting, Maric said he had talked with employers and unions over the past few days and that more would be known in a couple of days.

“Hypothetically, if the government and the coalition partners reach an agreement and we present those measures by the end of July and put them to public consultation, then that can go into force in terms of bylaws,” Maric said.

Asked if there was room to cut taxable income and who would benefit most, he said it was necessary to distinguish between non-taxable income and personal deductions, which now amount to HRK 3,800, and that income tax revenue was made available to local government.

He said it was necessary to take into account the repercussions and combine the positive effect on the economy, employment, salaries, and local budgets. He noted that for 1.8 million citizens any changes in terms of brackets, rates and personal deductions did not affect net wages and that the only way to influence them was through the non-taxable income system.

Asked if that was the only room for tax changes, he said one should look at the whole, adding that so far the tax relief for citizens and businesses totalled HRK 8 billion and that the non-taxable income segment had been “opened.”

(EUR 1 = HRK 7.38)