Property tax collection based on zones

Finance Minister Mr. Mladjan Dinkic presented today, in line with the Law on property tax, the manner of calculation of this tax for 2004. “Final decisions for tax payment, increased by the living costs, are being delivered to citizens as of yesterday”, said Minister Dinkic.

He added that a strong progression was made in taxation of the ones who live in special zones, such as Savski venac municipality or Dedinje residential district where the property tax is increased by 2.5 times compared to the last year. “The coefficient for the location situated in extra zone such as Dedinje has been changed from 0.80 to 2.00”, said Dinkic and explained that the change of location coefficient brought about the increase of this tax. Thus, for the first zone, encompassing the city centre and a part of Vracar district, the tax has been increased by 25%, for the second zone including Vozdovac and a part of Novi Beograd districts by 14%, whereas the tax has not changed for the property in the suburbs.

Dinkic stressed that, according to the comparative review of realised revenues in the period between January and April 2003 and 2004, better collection of turnover tax was recorded (by 22.5% compared to the last year), as well as the growth of total public revenues, i.e. contributions for social insurance. “The inflow is particularly good in the Pension Fund, where an increase of almost 50% compared to the last year has been recorded”, stated Dinkic.

The Minister of Finance stressed that the collection of excise tax jumped 20 percent, especially in April when check ups were intensified. The major growth of 36 percent was realised through the collection of excise tax on tobacco products.