ZAGREB, April 21, 2020 – The Croatian Employers’ Association (HUP) on Tuesday called for the reduction of the 20 highest parafiscal taxes, whereas other parafiscal charges should be either revoked or reduced by 70%.
The HUP believes that during the coronavirus crisis it is high time that those charges were thoroughly analysed and most of them revoked or reduced.
The press release signed by HUP director-general Davor Majetić reads that the current crisis imposes an obligation on the authorities to remove all hurdles and costs that make doing business harder and affect the investment potential of companies in Croatia.
The HUP recalls that for the last twenty and odd years it has forwarded requests for the reduction of parafiscal charges to various governments.
“We have underscored on several occasions that those taxes should be suspended and then thoroughly analysed so as to reduce their number to a minimum and within the acceptable frameworks business-wise,” Majetić was quoted as saying.
The HUP published a first list of parafiscal taxes in 2007 and the list contained 245 various charges. Since then their number has risen almost twofold.
The press release cites several examples of this burden on businesses in various sectors.
For instance, a manufacturer in the timber industry that employs 2,000 workers is expected to pay HRK 4.6 million kuna annually in parafiscal charges. They include HRK 123,700 as the annual membership fee of the Croatian Chamber of Commerce (HGK), taxes for preservation of listed building in the amount of 47,300 kuna, the television and radio subscription fee in the amount of 54,500, the fee for packaging waste management in the amount of HRK 65,200, water management tax in the amount of 52,500, forest parafiscal charges in the mount of 191,400.
Another example is an agricultural producer with about 100 workers on its payroll who is expected to pay nearly 380,000 in parafiscal taxes annually.
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