Burilović Says HGK Needs Further Reforms, Possibly up to 150 Layoffs

Addressing the HGK general assembly in Zagreb, Burilović said that after 30 years, this institution would be overhauled due to the new legislation on the HGK.

Also on Tuesday, Economy Minister Tomislav Ćorić outlined to lawmakers a new bill on the chamber, explaining that the purpose of the new legislation was to encourage positive changes and not to undermine the reputation of the HGK.

Last week, the government sent to the parliament a draft bill on the HGK whereby the mandatory membership fee will be waived for more than 95% of entrepreneurs in Croatia.

The bill envisages three categories of members.

The first group includes members who can apply for the fee waiver if they meet at least two of the following three criteria: their total assets do not exceed HRK 7.5 million, their annual revenues do not exceed 15 million kuna, and/or the number of people on their payroll is below 50.

The second category comprises those who surpass at least two of the above mentioned criteria, however, they do not surpass the following three criteria: assets of 30 million kuna, their annual revenues do not go beyond HRK 60 million and the number of their employees is up to 250.

The third category includes those who surpass two of the requirements set forth for the second category.

Category 1 members, an estimated 126,000 businesses whose monthly fee has been 42 kuna so far, will be exempt from the mandatory membership, however, they will pay additional services and products of the Chamber, as specified in the HGK price list.

They will be offered the possibility to pay voluntary membership aimed at stimulating the modernisation of the workings of the chamber.

Members from Category 2 and 3 are supposed to pay the mandatory membership fee and the fee will be defined for each category on an annual basis.

Addressing the HGK assembly, Burilović said that when he came at the helm of this institution in 2015, the first wave of reforms started and at the time the HGK personnel was downsized from 670 to 380. He expects the further layoffs  and also recalled that fees had been slashed four times in the said period.

After the implementation of the new law, the chamber is likely to have 230 people on its payroll.

The HGK assembly today decided to exempt businesses from the quake-hit areas from the fee payment in the rest of this year.

Also businesses from the hailstorm-affected parts of Požega-Slavonia County are exempt from the payment of membership fees this year.

For more about politics in Croatia, follow TCN’s dedicated page.

 

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