Finance Minister:

'Rich should contribute more to public purse'

02.11.2012 u 15:49

Bionic
Reading

Rich citizens who own several flats or business offices would have to make higher contributions to the funds for education, social security and other public needs, Finance Minister Slavko Linic said in Zagreb on Friday.

Those who have saved and acquired five flats are the rich and have to contribute more to the public purse than workers, Linic said at a news conference in Zagreb on Friday, in response to questions to comment on criticism that his proposal for introducing property tax would burden property owners.

Linic said that the policy of his Social Democratic Party (SDP) was to reduce contributions paid from workers' salaries so that higher take-home wages would remain for them and that the Croatian economy would be made more competitive.

The minister said that it was a crime to possess a flat which is empty and unused as it is property unexploited.

If such a flat is rented legally, it will be exempt from the taxation, Linic said adding that also tax should be imposed on business premises not used and empty.

He accused the rich of having spent their money on a media campaign in the last six months against the government's plan to impose property tax.

The start of the enactment of the amended property taxation legislation which would introduce real estate tax is prolonged until next spring.