The government has not yet made a final decision on possible changes to Value Added Tax and the introduction of a property tax, however, any presumable change in the tax system will not lead to an increase in the overall tax burden, Prime Minister Zoran Milanovic said on Saturday after his talks with local authorities in the city of Sisak.
In response to assessments made by Damir Kajin of the Istrian Democratic party (IDS), a partner in the ruling coalition, that raising VAT and introducing a property tax would be a failure, Milanovic said "the good thing with Kajin is that he never does anything behind someone's back", however, the matter of the tax reform "is much more complex".
We have not yet made any final decision. Apart from plans to increase the general VAT rate, we have also announced the reduction of VAT for some services, which will be beneficial to the region where Kajin comes from, the premier said.
He stressed that his cabinet would not make any rush decisions.
