Croatian government may implement a ''crisis tax''

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The Croatian government is planning to introduce a special crisis tax of three per cent on all pensions and other incomes higher than 3,000 kunas or 409 Euros a month.
Prime Minister Jadranka Kosor presented the proposal to the unions this week.
The government's first suggestion was a crisis tax of eight per cent, but the unions rejected it.
If adopted, the new tax will be in effect between 1 August and the end of 2010.
Some experts estimate the tax could provide the government with an extra 4.5-to-5.0 billon kunas or around 614 million Euros.
Asked if it would be fair to make everyone pay the same percentage, Kosor said it was better to have some payment rather than none.
She added: "I believe it is more unfair for people not to receive their pensions or to lose their jobs. I believe people will understand that the present situation is extremely difficult."
Many economic experts have told the Croatian media they believe the new tax would make things worse rather than better.

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