Former Finance Minister Lalovac support MOST’s initiatives.
Former Finance Minister Boris Lalovac (SDP) commented on Monday on latest conflicts between HDZ and MOST concerning the possible abolition of the Office for Tax Fraud Detection, tax reform and the relationship with big banks, reports N1 on November 14, 2016.
Lalovac said that HDZ had not offered any serious reason why the Office should be abolished. “It is important to say that we, when we decided to establish the Office two years ago, were looking for best possible practices in the world. My visits to the United States and Germany, and visits of my colleagues to the European Commission, had shown us what the best solution were. We have taken the best candidates, who had to undergo a number of professional and security checks. They received the best possible education and also have maximum possible independence in their work. We have selected the best of the best, in order for them to remain independent and report directly to finance minister, so that no one could interfere in their job”, explained Lalovac, during whose term the Office was established.
He added that the Office for Tax Fraud Detection was supervising work of the Tax Authority, so it was pointless for it to become its part, since it is “difficult to see how an institution could supervise itself”.
In this context, Lalovac supported MOST’s demand for the Office to remain independent, which he said was the voice of reason in the government.
“If the Office were to become integrated with the Tax Authority, it would soon disappear. I support my colleagues from MOST, because they said they wanted to leave things as they are. MOST is the lone voice of reason here”, said Lalovac.
He also criticized the tax reform proposal. “They have abandoned the proposal to reduce the general VAT rate. We are said that we would reduce VAT on a specific group of food products. They did not make any selection, but first announced they would reduce the general rate of VAT, and then they changed their minds. In the end, nothing will happen. It is important for them to promise anything in order to come to power, and then they do whatever they want. I do not know when the time will come when unfulfilled election promises will be punished. The expert team was supposedly working on the tax reform proposal, and then the same expert team said that we would go bankrupt in 2017 and that we should not touch taxes. In the end, the tax reform will come down to the introduction of a tax on real estate, there will be the abolition of the Office for Tax Fraud Detection, and some changes to income tax brackets, which I support”, said Lalovac, admitting that the decrease of income tax was a good idea.
