The director of the Serbian Association of Employers, Srdjan Drobnjakovic, said that the employers assembled under the Association will request a reduction of payroll tax and contributions by 1% from the Government of Serbia in October, during the preparation of the new state budget.
He added that they would make ask for the reduction in payroll tax regardless of whether the request to increase the non-taxable segment of salary from 16,000 dinars to 19,000 dinars was accepted during the negotiations on the minimum wage for 2021.
Drobnjakovic added that companies wanted the charges to be reduced not to increase profit, but to be able to pay salaries to their employees and not to have to resort to shadow economy practices.
“Businesses are heavily burdened, because, in addition to various fiscal obligations, they also pay close to 500 parafiscal fees,” Drobnjak said.
According to him, the employers have been asking for the parafiscal charges to be reduced for several years now, but despite the promises made by the Finance Minister that they will be cut, the number of those charges has grown from 350 to around 500.
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He also said that the burden on businesses would be reduced by around 11 billion dinars if the non-taxable part of salary was increased from 16,000 to 19,000 dinars.
Drobnjakovic went on to say that 50 per cent of companies still pay taxes regularly, regardless of the fact that the Government of Serbia allowed payment of payroll, profit and net income tax to be postponed for several months during the pandemic and that these levies can be paid in 24 instalments as of January 2021.
“Employers are afraid that their financial obligations will accumulate in the next year and that they will not be able to settle them, so they are trying to pay them without delay,” said Drobnjakovic and added: ““I believe that the time has come to reform to tax system and to introduce progressive grade-based taxation.”
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