Croatian deficit exceeds expectations, GDP drop continues
Government introduces corrective measures to stimulate spending
30 October, 15:52To encourage more citizen spending and give a "breath of fresh air" to the middle class, the government will rise the non-taxable portion of income as of February - a measure which should bring 10 to 100 euro increase in paychecks to over one million Croatian workers. The loss of tax return is to be compensated by the introduction of a 12% tax on savings interest. Currently, Croatia is the only EU country without a tax on savings and with 12% will however remain one of the lowest in Europe. (ANSA).