VUCIC: Payroll taxes on salaries higher than RSD 70,000 to be lower, reduction of income tax planned as well

Prime Minister Aleksandar Vucic stated on Friday, December 23, that the state intended to stimulate those who paid higher salaries and that a reduction of payroll taxes was planned.

Vucic said that those who paid salaries of RSD 70,000 and up would be stimulated, instead of those who paid minimum wages plus a certain “cash in hand” amount.

As he said, the intention was to also reduce the income tax from May or June 2017 in order to stimulate both local and foreign investors.

He added that the transfer from the shadow economy to regular business would be stimulated, so that taxes would be paid regularly, securing the money for investments in schools, hospitals and for pension payment.

The reduction of the shadow economy will, according to him, contribute to a decrease in the unemployment rate to 11% in the next three to four years.

Vlada Republike Srbije

Government of Serbia

Aleksandar Vucic

reduction of payroll tax

payroll tax

minimum wage

income tax

local investors

foreign investors

shadow economy

unemployment in Serbia