Finance Minister proposes one levy and one tax

Finance Minister and OLaNO leader Igor Matovic proposes to make extensive overhauls to the taxation of labour. He wants the whole system to be based on two figures: employers to pay 39-percent levies on total cost per employee and employees to pay 19-percent tax on their gross wages. Speaking at the second in a series of press conferences on tax-levy reform on Monday, Matovic pointed out that the measure would yield employees an additional €395 million annually. According to Matovic, the tax-levy burden would thus be slashed by about five percent, with 99 percent of employees due to see higher net incomes. The rest are high-income earners, with incomes north of €20,000, who might not care anyway. In Matovic's view, the reform would make the job of accountants significantly easier.