Bank taxes

Economic expert says any new tax would burden economy

20.08.2010 u 16:43

Bionic
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The introduction of any new tax burdens the economy, a member of the government's team of economic advisors, Sandra Svaljek, said on Friday, with another team member, Borislav Skegro, saying that the introduction of taxes on banks' assets was not crucial to a forthcoming budget revision, but was rather an interesting media and political topic.

"The general position of economists is that any new tax is burdening the economy and our advice to the Prime Minister goes in that direction. However, decisions to be taken are to be discussed some more," Svaljek said after a meeting at the government headquarters.

Svaljek said that today's meeting focused on the implementation of the government's economic recovery programme, on the anticipated budget revision and other topics, but that no concrete decisions were taken.

When asked about her solution to the problem of strained state finances, Svaljek said that economists had given the Prime Minister their best advice, and that politicians should now be given some time to consider it.

Borislav Skegro, another member of the government's team of advisors, said the introduction of taxes on banks' assets was not crucial to the forthcoming budget revision, but was rather an interesting media and political topic.

Today's meeting focused on topics far broader than the issue of taxing banks' assets, said Skegro.

He said that the budget revision would definitely lead to changes in budgetary expenses, but would also aim to ensure higher revenues.

When asked if Croatia needed help from the International Monetary Fund, Skegro said that it was not necessary and that Croatia was capable of dealing with current challenges on its own.

He added that the government could present its budget revision in a matter of days.