Vucic announces decrease in labor tax

(Aleksandar Vucic)

Serbian First Deputy Prime Minister Aleksandar Vucic announced Friday (6 September 2013) a significant decrease in the labor tax, which should encourage employers to make bigger investments.

Vucic stressed that the labor tax would not be reduced by only one or two percent, but by a significant stimulating percentage, that is, by an amount of money that would mean a lot to every employer.

In a statement he gave to the press after a meeting with the members of the American Chamber of Commerce at Belgrade-based Hyatt Hotel, Vucic said that they were considering the abolishment of labor taxes for workers under the age of 30 or 35.

Vusic stressed that the government had not talked about VAT increase as that would only produce a negative result in the current time of weak economic activity.

Answering the questions of journalists, he said the amendments to the Labor Law, the pension reform and the completion of the company restructuring process were painful cuts to come.

When asked if he would receive support from his coalition partners for the pension reform, Vucic said that Serbia must go forward, regardless of who made up the government, because it must create a healthy system.