The Impact of Proposed Changes in Personal Income Tax on the Living Standards of Citizens in Croatia

The Ministry of Finance has proposed economic policy measures to mitigate the consequences of the growth in food an energy product prices on the living standards of the population. One of these measures should be the provision of subsidies to individuals and companies and the other is aimed at changing the tax system, specifically, at increasing personal allowances and income tax brackets of the personal income tax (PIT). The goal of this paper is to answer the following question: To what extent will the announced measures increase the disposable income of citizens