Milanovic doesn't believe HDZ's promise of VAT cut

Social Democratic Party (SDP) president Zoran Milanovic on Saturday commented on the Croatian Democratic Union's (HDZ) promise that it would cut VAT if it came to power in September, saying one should not believe the HDZ because it had made similar promises before elections in the past but never kept them.

Speaking to reporters in Cakovec, Milanovic said his cabinet had raised the threshold for small businesses obliged to pay VAT from HRK 85,000 to 280,000 and set a HRK 3 million threshold below which VAT was charged only on bills paid and not just those issued.

"We must provide conditions for the payment of all benefits. Revenue from VAT is HRK 45 billion, which would mean HRK 2 billion less from the start."

Milanovic said the SDP-led coalition would present its platform for the early parliamentary election on Monday. He said the platform was "realistic because its basis is what was done in four years... That's not even a programme, it's statistics. It wasn't financed with Russian money and it's realistic because it has a firm basis which Bridge and the HDZ didn't manage to in ruin in half a year."

He said the coalition did not plan new taxes but to relieve the price of labour, cut income tax, raise the non-taxable income to HRK 3,000, and cut VAT on food produced in Croatia.

(EUR 1 = HRK 7.48)

Last update: Sun, 31/07/2016 - 13:22
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