Finance Minister Zdravko Maric on Thursday said that the tax-evasion watchdog was given greater independence with changes to the legislation during the first round of tax reforms.
Prompted by criticism against the Tax Administration following the latest Janaf scandal and a lack of control of disproportionate assets to income of Janaf’s former CEO Dragan Kovacevic, reporters sked Minister Maric whether it was time for giving more power to the tax-evasion watchdog within the Tax Administration.
Maric underlined that the unit is now an integral part of the Tax Administration and that it is an independent institution and that the position of the head of the unit is filled by an assistant director in the Taxation Administration.
In reference to legal and organisational hierarchy, they have gained a lot more on importance, greater possibilities and independence. The staff working on that increased and they are working just as well if not better, Maric said.
He added that in the next few days the director of the Tax Administration would inform the public of the number of cases that the unit is currently processing.
Appetites always bigger than possibilities
Commenting on a protest by hospitality workers and hairdressers who are calling for a lower Value Added Tax (VAT) Maric said that it was the government’s idea from the beginning to reduce taxes, that is direct taxes such as income and profit, but also VAT which is an indirect tax.
“As far as all our further steps are concerned, naturally, we can consider and discuss everything but also within the framework of our possibilities,” said Maric.
He recalled that as of the first day of next year income taxes brackets would be reduced from 36% to 30% and from 24% to 20% and that profit tax would be reduced from 12% to 10% for enterprises with a revenue of up to HRK 7.5 million.
Also anyone with a revenue of up to HRK 15 million will be able to pay VAT once invoices have been paid.
Maric also recalled that he had recently met with representatives from HUP and HGK chambers of employers and businesses in reference to tax changes and that he would soon meet with unionists.
