Serbian Finance Minister Sinisa Mali said on Friday that taxes on salaries would be lowered next year to stimulate employment and wage raises.

He said that the set of tax laws which parliament adopted will help economic growth and the opening of new jobs. “We lowered taxes on wages to 62 percent last year and they will be 61 percent next year,” he said adding that this means a lower budget income by 13.1 billion Dinars. Mali said that the non-taxable part of salaries will be increased.  

The minister said that the new laws on personal income and social security dues include tax exemptions for new jobs. An tax exemption of 70 percent and 100 percent exemption on dues for social security are included for wages in 2020 along with exemptions of 65 percent on income tax and 95 percent on dues in 2021 as well as 60 percent on income tax and 85 percent on social security dues in 2022.  

Serbians returning home to stay will get tax exemptions of 70 percent and companies in innovation activities will get tax exemptions of up to 150,000 Dinars.