– The goals, motives, and reasons for tax reform at the level of local self-government units are unclear. The spatial dimensions of the tax reform have not been assessed, and the degree of fiscal centralization in Croatia has increased – said Professor Ante Bajo from the Institute of Public Finance during the continuation of the Lider conference 48 hours.
Analyzing the effects of tax reform on local self-government, Bajo added that the only reason for the constant changes in income tax is the desire of previous governments to control and manipulate the operations of local self-government units through control of income tax and its complex, unclear distribution. The outcomes of the distribution are, he said, often uncertain and unpredictable.
– The change in income tax occurred to punish the City of Zagreb, and the rest of us are collateral victims of that law. The state has neglected the effect of the so-called tax reform on individual cities – added Željko Turk, president of the Association of Cities in the Republic of Croatia during his presentation titled ’Tax Reform and Development Plans of Cities’.
The tax reform and its consequences on local self-governments were also discussed at the ’round table’.
– The amendment to the law on financing local self-government is a consequence of the attack by the Government of the Republic of Croatia on the City of Zagreb. Milanović has not met with the mayor of the City of Zagreb even once during his entire term. Gentlemen, this does not happen even in the most disorganized African countries – stated Slavko Kojić, head of finance for the City of Zagreb, adding that the disputed Article 45A forces cities to pay all excess above the minimum standard to the state.
