Petar Gosev, who was Finance Minister under the previous SDSM led Government and was later promoted to Central Bank Governor, lashed at Zoran Zaev over his move to suspend the progressive taxation and to revert to the flat tax regime introduced in 2006 by VMRO-DPMNE.
The Government says it showed virtue and corrected one of its mistakes. In fact, this shows that businesses or investors can’t count on the Government to carry out reliable projections and sustained policies. For 11 years, while in the opposition, they kept saying that the flat tax is not good, and now they introduce it back. They spilled blood to grab power and for 11 years they spoke about the unimaginable levels of income inequality, then made a symbolic gesture, and eventually dropped it, Gosev says.
Newly appointed Finance Minister Nina Angelkovska announced that the 18 percent progressive tax for higher income earners, and the 15 percent tax on rental income and capital gains are being suspended for three years, during which the previous, 10 percent flat rate will apply for all.