September 21 (SeeNews) - Croatia's government said it has adopted a package of tax reform draft bills forecast to save citizens and businesses 1.4 billion kuna ($221.9 million/188.5 million euro) in 2019 and 1.6 billion kuna in 2020.
The government sent to parliament proposals for nine legislative amendments concerning tax cuts, to be introduced from January 1, it said in a statement on Thursday following its weekly session.
The amendments foresee reduction of the value added tax rate (VAT) from 25% to 13% on baby diapers, meat and meat products, fish, vegetables, fruits, nuts and eggs, as well as a cut in the general VAT rate to 24% from 2020.
The government also proposed to parliament to adopt changes to the income tax law, which would see the tax rate on salaries of up to 30,000 kuna cut from 36% to 24%.
Moreover, the government is proposing to abolish employment contributions of 1.7% and work injury contribution of 0.5%, while raising health insurance contributions from 15 to 16.5%.
The property sales tax should also be reduced from January 1, to 3% from the current 4%.
Croatia lowered its income and corporate taxes at the start of 2017, expanding the tax base, which led to the first general government budget surplus since the country's independence.
(1 euro=7.42734 kuna)