PROGRAM OF GOVERNMENT 2017-2020 Economic growth, new jobs, higher standard The Program of the Government of the Republic of Macedonia, 2017-2020 will focus on economic development and increasing the citizens’ standard of living. The Government is strongly dedicated to support of domestic companies, especially small and medium enterprises, which invest and open new jobs. Business climate will be freed of political pressure and repression. Domestic companies will be linked to technological and industrial zones. The Government will pay special attention to increasing economic employment. Approximately 16 thousands new jobs will be added to economy every year through active employment measures. The Government is dedicated to increasing remuneration levels in all economic areas. By the end of the term, the minimum wage should cover basic life expenses. Wage increase should propel higher economic productivity. Workers’ rights will be guaranteed in parallel. Economic development cannot garner increase in citizens’ life standards without equal distribution of wealth. The Government aims at gradual introduction of fair principles in the key economic redistribution mechanisms – tax and social protection systems. Tax and social transfer changes will be introduced in conjunction with the improvement of the institutions’ effectiveness. The first step towards improvement of institutional effectiveness will be to provide full fiscal transparency. It will be the key priority in the first year of the Government mandate. Additionally, fiscal transparency will give the public clear insight into the true state of public finances. Fair taxation The Government aims at providing more fairness in the taxation system in the next four years by correcting the unfair distribution of income and societal wealth. Modifications in the taxation system will be introduced in conjunction with the provision of greater transparency of public spending of citizens’ money through the national budget. We will implement the following key measures: ∎ ∎ ∎ ∎ Introduce a fairer personal income tax with two rates (10% and 18%) which will also include personal income tax returns for citizens earning very low monthly salaries. The existing 10% rate will remain in vigor for most of the citizens, while the additional 18% rate will be calculated only to additional incomes earned by highest-earning persons. Abrogation of the maximum top-level salary contributions Introduce the possibility for a 0.1 percentage point increase of property tax levels for resident and non-resident real estate market valued at over 400,000 EUR. Introduce fairer taxation for multiple real estate ownership. Increase the excise duty rate for luxury vehicles over 40,000 EUR. The Government of the Republic of Macedonia will introduce a new “more money to the citizens” system, guaranteeing 15% VAT returns to citizens, with the exception of the taxes paid upon the purchase of luxury goods. The system will integrate checks and limitations, so to avoid misuse and additional stratification. 2