This seems to be a change in taxation policy almost precision-made to push yet more young educated people abroad.
In Serbia, a country with a major brain drain problem, this is tantamount to serious self harm.
In Serbia, a country with a major brain drain problem, this is tantamount to serious self harm.
No doubt it is self harm, when viewed against the well being and progress of the country as a whole. On the other hand, for the individuals and systems that appear to determine what actually happens in Serbia, having this brain drain might be everything but a problem. In fact, it might be their main source of profit, power and success.
It's a lot easier to convince/coerce uneducated and desperate people, into supporting things that are eventually against their own interests. Just providing short term benefits that make them appear better off than all "other" people is usually enough. It doesn't matter that it's a pyramid construction and that everyone will eventually pay through their nose. The people who support such schemes usually either can't see how they are being played, or just don't have a "luxury" to even care about whatever might happen tomorrow (they just need whatever benefits they can grab now).
The recently published guidelines for Serbia tax officers on what the back taxes should be include income ranges up to 10.000 EUR/month — there are some serious earners in there who haven't paid any taxes for likely more than 5 years (but the statute of limitations only allows the government to claim for that much, or rather, accused can call upon the expiration of tax debt if no action was taken in 5 years)!
Serbian government has already made provisions to cut the taxes retroactively by ~20% (which those who've paid them on time do not get the benefit of), and another set of provisions which almost nullifies all the backtaxes for anyone in the <500 EUR/month income bracket (an average net salary in Serbia) for the last 5 years, so the ones most affected are going to be those having earned more than the average. And it sure sucks for those being just slightly over the hump, so they are most negatively affected!
Serbia, until early last year, allowed for self-employment with pre-set taxes without any bookkeeping (for IT professions at around 250-400 EUR a month, other professions had it even cheaper) for years up to a total of 50.000 EUR a year, so anyone who was earning any money between 700 and 4500 EUR a month gross had an extremely beneficial taxation situation if they only registered with the tax office).
So it's a tricky situation to be caught "red handed" in, but nothing has really changed in the law, it's just that the Tax Office has become more vigilant in chasing down the offenders of this particular tax (which requires self-reporting). I'd personally have more sympathy if they admitted to being caught breaking the law, and then asking for better conditions that do not bankrupt them.
The biggest argument for those protesting is that Tax Office employees were not giving any advice about how to file tax reports, which is true (I've experienced it myself, which is why I got outside counsel and read the laws myself back in 2000s), even though they are required to give tax advice to private persons by law.
But in a functioning system, that would be settled in the damages court against those tax office employees, and part of the obligation would still be with the tax avoider, though Serbia has anything but a functioning judicial system. :)