[size=75:2ow79ubq]BNEWS 17 November 2009

Eastern Europe fights crisis with more taxes

Declining revenue in state coffers and increasing costs make governments in Eastern Europe to devise new methods to combat recession. Some of them are really unconventional. Some of them are really unconventional. Croatia for instance, introduced the so-called "
crisis tax"
income of the richest and began to take back to 6 percent of the revenues of mobile operators. Croatia for instance, introduced the so-called "
crisis tax"
income of the richest and began to take back to 6 percent of the revenues of mobile operators. In Greece, even imposed a tax to consumers of mobile services. In Greece, even imposed a tax to consumers of mobile services.

Across the world, prime ministers and finance ministers on how to combat wise recession against the backdrop of falling revenues and rising costs. Across the world, prime ministers and finance ministers on how to combat wise recession against the backdrop of falling revenues and rising costs. The responses of financiers are different and vary in their best attempts to reduce the outlay to increase taxes. The responses of financiers are different and vary in their best attempts to reduce the outlay to increase taxes. Somewhat special situation in Eastern Europe. Somewhat special situation in Eastern Europe. This crisis comes complete with gas, and most countries in the region failed to accumulate money for a rainy day - despite solid economic growth over the past 2-3 years. This crisis comes complete with gas, and most countries in the region failed to accumulate money for a rainy day - despite solid economic growth over the past 2-3 years. Hungary, Ukraine, Romania and Lithuania have been able to avoid bankruptcy only because of loans from the European Union or the IMF. Hungary, Ukraine, Romania and Lithuania have been able to avoid bankruptcy only because of loans from the European Union or the IMF. Only last week did Serbia get billionth injection from Russia to save it from bankruptcy. Only last week did Serbia get billionth injection from Russia to save it from bankruptcy.

"
It will hurt"


"
It will hurt! New Hungarian Prime Minister Gordon Baynai tried to convey this mantra of his countrymen. And while the West are still afraid to save a lot eksikonomicheskiyat Minister knows only this medicine. In a radical diet money he will try to cure the economy of their country. Baynai cut costs primarily in the social sphere. Money will not aid for poor families, support for sick or support for building of housing. Moreover, pensioners and employees of the state work will have to forget about the 13 -- s pension and salary. I know you sound? This year alone the government will save nearly 1.5 million euros. In return, the cabinet will reduce the tax burden on employers in areas with low wages. Moreover, next year will be reduced and corporation tax. "
It will hurt! New Hungarian Prime Minister Gordon Baynai tried to convey this mantra of his countrymen. And while the West are still afraid to save a lot eksikonomicheskiyat Minister knows only this medicine. In a radical diet money he will try to cure the economy of their country. Baynai cut costs primarily in the social sphere. Money will not aid for poor families, support for sick or support for building of housing. Moreover, pensioners and employees of the state work will have to forget about the 13 - s pension and salary. I know you sound? This year alone the government will save nearly 1.5 million euros. In return, the cabinet will reduce the tax burden on employers in areas with low wages. Moreover, next year will be reduced and corporation tax.

In most neighboring countries seem anti-crisis measures in the same way. In most neighboring countries seem anti-crisis measures in the same way. Romania his mind to cut one-fifth of its outlay for civil servants. Romania his mind to cut one-fifth of its outlay for civil servants. Unlike Hungary, however, here the IMF is unhappy with the slow pace of progress and urges more strongly, to say it straight - calls for even greater frugality. Unlike Hungary, however, here the IMF is unhappy with the slow pace of progress and urges more strongly, to say it straight - calls for even greater frugality. And the country is required to keep the deficit below 3% of GDP. And the country is required to keep the deficit below 3% of GDP. And this year it should be about 7.3 percent of GDP - because of poor economic environment. And this year it should be about 7.3 percent of GDP - because of poor economic environment.

No taboos in taxes

Focus of most governments in the region is on savings, especially when the cost of pensioners and civil servants. Focus of most governments in the region is on savings, especially when the cost of pensioners and civil servants. However, in tax policy is non-traditional methods. However, in tax policy is non-traditional methods. For example, Hungary increased VAT from 20 to 25%. For example, Hungary increased VAT from 20 to 25 percent. From January again will be introduced and tax "
real estate"
as the Treasury so far has it without the revenue from property tax. From January again will be introduced and tax "
real estate"
as the Treasury so far has it without the revenue from property tax.

Higher VAT and pledged Republic and Croatia. Higher VAT and pledged Republic and Croatia. Prague will be raised from 20 to 22% VAT but even there the rate for food is lower. Prague will be raised from 20 to 22% VAT but even there the rate for food is lower. However, there rose by 33% excise duty on beer - at 1.85 dollars per 100 liters, to the consternation of all lovers of beer. However, there rose by 33% excise duty on beer - at 1.85 dollars per 100 liters, to the consternation of all lovers of beer.

The authorities in Zagreb have proved to be quite creative - the increase in VAT at a rate of 23% there is just a standard idea. The authorities in Zagreb have proved to be quite creative - the increase in VAT at a rate of 23% there is just a standard idea. It is expected by year's end that lead to infusion of additional 205 million in state budget. It is expected by year's end that lead to infusion of additional 205 million in state budget. Much more unusual is the decision for a new tax of between 2 and 4 percent on wages and pensions over 3 000 kuna (less than 400 euros), royalties, dividends and management bonuses. Much more unusual is the decision for a new tax of between 2 and 4 percent on wages and pensions over 3 000 kuna (less than 400 euros), royalties, dividends and management bonuses. Croats called it "
tax crisis."
Since the summer the state began to collect and in 6% of total monthly revenue from SMS and MMS messages and mobile phone calls to mobile operators. By the end of the year, additional funds from these measures to reach 58, EUR 6 million. Croats called it "
tax crisis."
Since the summer the state began to collect and in 6% of total monthly revenue from SMS and MMS messages and mobile phone calls to mobile operators. By the end of the year, additional funds from these measures to reach 58, 6 million euros.

Romania also surprises with its decisions. Romania also surprises with its decisions. In April, former Prime Minister Emil Bock already threatened by a new tax (known as "
Robin Hood tax"
) foreign banks to withdraw money from their local affiliates, rather than with loans to finance the local economy. Shashna previous government financial world with the idea to introduce and special tax on mobile phones, watches, GPS-systems and magazines for adults (in plain text - porno mags). If this levy was introduced, it would be a unique measure in the entire European Union. Moreover, the World Bank recently warned that with its 113 Romania is a tax on the record number of obligations of this kind in the world. To bring more money into the state fund was increased and excises on tobacco and alcohol. levy on cigarettes was raised in September from 64 euros in 1000 short of 74 euros. And yet in April had increased duty on alcohol - by between 11 euros and 13 euros per hectolitre for different types of alcohol. This measure is expected to submit additional EUR 350 million in Romania's budget. In April, former Prime Minister Emil Bock already threatened by a new tax (known as "
Robin Hood tax"
) foreign banks to withdraw money from their local affiliates, rather than with loans to finance the local economy. Shashna previous government financial world with the idea to introduce and special tax on mobile phones, watches, GPS-systems and magazines for adults (in plain text - porno mags). If this levy was introduced, it would be a unique measure in the entire European Union. Moreover, the World Bank recently warned that with its 113 Romania is a tax on the record number of obligations of this kind in the world. To bring more money into the state fund was increased and excises on tobacco and alcohol. levy on cigarettes was raised in September from 64 euros in 1000 short of 74 euros. And yet in April had increased duty on alcohol - by between 11 euros and 13 euros per hectolitre for different types of alcohol. This measure is expected to submit additional EUR 350 million in Romania's budget.

Speaking of cigarettes - to look south. Bulgarian fond of tobacco and hard alcohol will be penalized the following year. Speaking of cigarettes - to look south. Lovers of Bulgarian tobacco and hard alcohol will be penalized the following year. The increase in rates for these goods is respectively 30% and 15% compared to 2009 so the excise duty on cigarettes will be 76 euros for 1000 short. The increase in rates for these goods is respectively 30% and 15% compared to 2009 so the excise duty on cigarettes will be 76 euros for 1000 short. Hard alcohol excise duty will rise even from 1100 to 1256 leva (644 euro) per hectolitre of hard alcohol. Hard alcohol excise duty will rise even from 1100 to 1256 leva (644 euro) per hectolitre of hard alcohol. In the struggle with the crisis next year lapse and one adopted last year preference - for young families with a mortgage loan for first home established by ruling coalition. In the struggle with the crisis next year lapse and one adopted last year preference - for young families with a mortgage loan for first home established by ruling coalition. Moreover, Bulgaria introduced a requirement for a minimum period after which the owner of the house can sell it without having to pay tax on income received - 3 years. Moreover, Bulgaria introduced a requirement for a minimum period after which the owner of the house can sell it without having to pay tax on income received - 3 years.

"
Safari"
for luxury cars

More to the south also has unconventional ideas. More to the south also has unconventional ideas. Month or so the Greeks were less happy. Month or so the Greeks were less happy. The reason is a new state fee for mobile services. The reason is a new state fee for mobile services. Unlike Croatia, where he dealt operators here drew the short stick users. Unlike Croatia, where he dealt operators here drew the short stick users. State tax withheld not only the subscribers but also the holders of prepaid cards - they pay 12 percent on the value of prepaid minutes. State tax withheld not only the subscribers but also the holders of prepaid cards - they pay 12 percent on the value of prepaid minutes. For post-paid subscriber's account is slightly more complicated - they will pay 12 percent on their monthly bill if it is below 50 Euros, the fee will increase in proportion to 20% for accounts over 150 euro. For post-paid subscriber's account is slightly more complicated - they will pay 12 percent on their monthly bill if it is below 50 Euros, the fee will increase in proportion to 20% for accounts over 150 euro. The government justified its non-standard ideas, of course, need to promote the country's budget in a crisis. "
Hollow phrase is an explanation for the so-called"
safari "
for luxury cars. Ponapalni To coffers a little more, the government launched joint teams to check the luxury cars for unpaid taxes literally on the road. The government justified its non-standard ideas, of course, need to promote the country's budget in a crisis. "
Hollow phrase is an explanation for the so-called"
safari "
for luxury cars. Ponapalni To coffers a little more, the government launched joint teams to check the luxury cars for unpaid taxes literally on the road.

But this is nothing compared to the tax shock that the new government will introduce Georgiou Papandreou in 2010, plans to introduce a uniform tax rate that would repeal a flat tax of 25%. But this is nothing compared to the tax shock that the new government will introduce Georgiou Papandreou in 2010, plans to introduce a uniform tax rate that would repeal a flat tax of 25%. Income to 12 000 Euro will be taxed, such as 20 000 euros will be subject to 15% tax and 25% will be forgiven people with income from 20 000 to 30 000 euros. Income to 12 000 Euro will be taxed, such as 20 000 euros will be subject to 15% tax and 25% will be forgiven people with income from 20 000 to 30 000 euros.

El Dorado tax Serbian Serbian Tax El Dorado

In Serbia, the situation is slightly different. In Serbia, the situation is slightly different. Surely there is something wrong in the local tax system. Surely there is something wrong in the local tax system. Here, the more you earn, the more you reduce the tax. Here, the more you earn, the more you reduce the tax. Levy on property is even negligible. Levy on property is even negligible. In principle, the developed countries there is a limit below which income is not taxed, while Serbia and the people paying taxes, receiving 150 euros. In principle, the developed countries there is a limit below which income is not taxed, while Serbia and the people paying taxes, receiving 150 euros. According to the agency "
Blitz"
in the tax base of 1 million Serbian citizen must give the state some 146 000 euro, that is - twice less than the citizen of Cyprus. According to the agency "
Blitz"
in the tax base of 1 million Serbian citizen must give the state some 146 000 euro, that is - twice in less than a citizen of Cyprus.

Economy Minister Mladjan Dinkic claimed that Serbia will uvechili budget deficit and reduce state administration. Economy Minister Mladjan Dinkic claimed that Serbia will uvechili budget deficit and reduce state administration. Country will be reduced and salaries and pensions will not increase VAT. Country will be reduced and salaries and pensions will not increase VAT. To cope with budget deficits swelled, Serbia has recently concluded an agreement with Russia for a loan of EUR 1 billion. To cope with the budget deficit swelled, Serbia has recently concluded an agreement with Russia for a loan of EUR 1 billion. At the insistence of the IMF about 350 million of this money will go exactly to reduce the budget deficit. At the insistence of the IMF about 350 million of this money will go exactly to reduce the budget deficit. Nevertheless, or perhaps because of this, the Serbian economy will be growing most slowly in the Balkans. Nevertheless, or perhaps because of this, the Serbian economy will be growing most slowly in the Balkans. According to IMF forecasts growth next year it will be 1.5 percent. According to IMF forecasts growth next year it will be 1.5 percent.

What a read can someone now tell me what all this means to a mere mortal like me
sarah

I think it probably means that everything is gonna get more expensive Sarah.
Nothing new really.

[size=45:gcdoylpy]novinite

Bulgaria Wary of EU Tax Harmonization Plans

Calls against EU-wide tax harmonization moves are gathering speed in Bulgaria ahead of a key meeting of European Union leaders on March 11 in Brussels.

Bulgaria is one of the European Union member states, whose businesses will be hardest hit by tax harmonization moves, according to analysts.

If Brussels pressures Bulgaria into raising its comparatively low corporation tax rate, the country will lose one of few - or may be its sole advantage - to the rich and developed European economies in the eyes of investors, local experts have warned.

Bulgaria has the lowest personal and corporate income tax in the EU at 10%, which was introduced at the beginning of 2008, replacing the previous system, which combined several different tax rates - between 20 and 24%, depending on income.

Bulgaria also has the lowest social security rates, which coupled with a 10% flat rate, makes it very attractive for physical entities, employers and potential investors.

A change to corporate tax rules could involve the EU setting a minimum corporate tax rate of more than the 10% charged by Bulgaria, and introduce a new harmonized tax system known as the Common Consolidated Corporate Tax Base (CCCTB).

The draft document, which will be discussed at the March meeting in Brussels is provisionally called a pact and suggests that members would each have a say in each others' major economic policies before they are brought in.

It also mentions a proposal for the introduction of the Common Consolidated Corporate Tax Base (CCCTB).

Under the system, corporate tax paid by a multi-national would be paid proportionally to a number of countries, depending on its level of business in each.

Some observers have suggested that this is a move towards harmonised corporation tax, but EU officials deny this.

That part of the document will be of interest to the incoming government in Dublin, as the Republic has faced pressure from other European countries to raise its comparatively low corporation tax rate.

The Republic of Ireland attracts a large share of EU foreign direct investment (FDI) due to its 12.5% flat rate of tax on profits.

Ireland currently has the lowest corporate tax in the Eurozone and the third-lowest corporate tax rate in the European Union, after Bulgaria and Cyprus.

Sarah wrote:

What a read can someone now tell me what all this means to a mere mortal like me
sarah

It really means be careful, because someone has got their hand in your wallet or purse and you won't know it's happening, common occurrence in the UK where our government have no qualms about taking our money without asking first!!