Govt extends write-offs to tax debts for the poor

The government is expected to discuss a bill on measures to relieve financial difficulties for citizens under distress for small amounts and will also discuss amendments to the Law on Government-Subsidised Housing Construction (POS), at its meeting on Thursday.

Agreements signed with banks, telecom operators, public companies and cities or creditors and the government to write off debts of the most vulnerable citizens will now also apply to debts to the Tax Administration following a government recommendation.

According to information from the FINA financial agency, last year more than 52,000 citizens were under distress for debts in arrears that were less than HRK 2,000 because they had lost their job or their business had fallen through.

The government will also discuss draft amendments to the law on government-subsidised housing construction. According to Construction and Zoning Minister Anka Mrak-Taritas the proposed changes relate to reducing interest rates for mortgage loans for government-subsidised housing and that the option of renting government-owned flats would be introduced.

There are currently two ways to pay loans for these units: one part is paid to commercial banks and part of that goes to cover the amount that the government absorbed from its own funds. The second part which has a grace period will be charged a 2% interest rate which would be reduced to 1% and the interest rate where the government engages its funds would be reduced from 5% to 3%.

The second amendment refers to renting government-owned flats which as Mrak-Taritas said should boost the construction sector and enable people who want to purchase a property to do so under controlled and more favourable conditions and for those people who cannot afford to buy to have the opportunity to rent at a subsidised lease.

(Hina) sp

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