July 5 (SeeNews) - Serbia's government plans to propose a cut in personal income tax rate during a visit of a mission of the International Monetary Fund (IMF) to Belgrade in September, finance minister Sinisa Mali said on Thursday.
The ministry plans to propose a package of stimulus measures in September, including a reduction of personal income tax, which will increase the competitiveness of the country's economy, Mali said in a statement.
Serbia operates a flat income tax of 10% withheld at the source, while an additional tax rate of up to 15% is levied on the gross annual income at the end of the year. As of January 2018, the monthly non-taxable income in Serbia amounts to 15,000 dinars ($148.5/127.1 euro)
Moreover, the government will make the final decision on the planned increase of pensions and salaries in the public sector in September, after the meeting with the IMF team, Mali said.
"The negotiations will be tough as the final decision to increase salaries and pensions is expected then, but I am sure that we will be able to persuade them because there is enough money in the budget," Mali noted.
In May, Serbia's prime minister Ana Brnabic said the abolishment of the law for reduction of pensions was proposed by the International Monetary Fund during its talks with the government on concluding a new, non-financial arrangement with the country. Serbia exited in February a successful $1.32 billion (1.13 billion euro) three-year stand-by programme with the IMF that overperformed many of its macroeconomic goals.
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