Tax cuts in Serbia are a complete success for young people in the IT sector

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Exemption of certain categories of employees from paying part of the taxes and contributions, which was announced yesterday by the President of Serbia, Aleksandar Vucic, according to the opinion of the Honorary President of the Union of Employers of Serbia, Nebojsa Atanaskovic, will contribute to higher employment, especially of young people.
Atanaskovic told Tanjug that the first announced measure, which is a three-year exemption from paying taxes and contributions in the amount of 70 percent on the salaries of those who are employed for the first time and receive at least the average salary, will be an incentive for employers to hire young people.
“Due to the lack of work experience, young people are often in trouble to find their first job. However, with the benefits provided by this measure that employers would receive, they would prefer to employ young people more often, so this measure for beginners will be a springboard to join our economic system and get a little better earnings than they would get if the state did not participate partly in this,” explains Atanaskovic.
According to him, the announced abolition of the obligation to pay the annual income tax for people under the age of 40 will be a great relief and stimulus for young people, ie one group of young people.
According to Atanaskovic, it will affect, above all, employees in the IT sector, who often have above-average salaries and very easily reach the threshold when this tax is paid.
“This is good news for all those who earn well, and they are mostly young people from the IT sector. This is the best way for the state to receive full salaries, ie contributions to them, so that they have salaries that will provide them with better pensions tomorrow, and at the same time, in addition to the regular taxes they pay on salaries, they do not have additional taxes at the end of the year,” considers Tanjug’s interlocutor. He adds that this measure can also help keep young people in the country, because, otherwise, many of them would be looking for a job abroad, where they could avoid such taxation.
Investing in young people
The director of the company “CarGo Technologies”, Vuk Guberinic, stated that the announcement of the abolition of the annual income tax for those under 40 is a brave and good measure of President Aleksandar Vucic and the Government, because it will act as a long-term stimulus to the domestic economy.
Guberinic said that this package of measures means investing in young people, and that reducing taxes for the research and development sector means new investments and new jobs for them.
When it comes to exemption from paying 70 percent of taxes and contributions on salaries of employees who work on research and development projects, Atanaskovic says that this measure is very justified.
“A large number of scientists work on jobs that are extremely important for our economy and for the development of science, and most often they do not receive salaries that are stimulating enough,” he points out.
He adds that all this together is a corpus of measures that should help young people in employment, super professionals not to be overly taxed for what they earn.
On the other hand, says Atanaskovic, employers are also stimulated, because if with these measures their obligations from gross salaries are lower, they can transfer the difference to higher salaries of workers who are, in a way, privileged in this way, Dnevnik reports.