Glas Poduzetnika Open Letter to Croatian Prime Minister Andrej Plenkovic

April 24, 2020 – An English version of the Glas Poduzetnika open letter to Croatian Prime Minister Andrej Plenkovic on April 22.

PRIME MINISTER PLENKOVIC, WE DEMAND FOUR POSTULATES FOR CROATIA 2.0:
MORE WORK, DIGITALIZATION, LOWER TAXATION, AND MORE JUSTICE

Dear Prime Minister,

On 17^th April 2020, we reached out to you with a request for a meeting, to which you did not respond. We believe that our responsibility for the future of Croatia is to send you publicly this open letter. That is our obligation, being a legitimate representative of over 100,000 citizens of Croatia that support us—entrepreneurs, self-employed who are members of the Association, their employees, and collaborators.

We would like to, on behalf of entrepreneurs, self-employed, and employees of the private sector, bring your attention to 4 main postulates (postulates are hypothetical in nature, but necessary and their existence is required, as per their name, according to the Latin postulare: demand, seek, postulates are necessary as necessary assumptions), based on which we should, from 1^st June 2020, begin the restoration of the Croatian society and state:

THE FOUR POSTULATES FOR CROATIA 2.0 ARE:

#MoreWork—State should not encourage non-working or less work with its tax, law, and other politics—on the contrary! They should support work, increase turnover, profits and wages increase!
#Digitalization—State has nothing to ask from us entrepreneurs and self-employed any document that they issued to us themselves! Digitalize the state administration. You started now, and it’s time to continue to the end!
#LowerTaxation—State does not have to give anything to us entrepreneurs, but it should take less, because we know the best what and where to invest the money that we made ourselves!
#MoreJustice—State should be the last to charge! Why do we ask for VAT payment upon invoice collection to become permanent, and not temporary measure? Well, because in this case, the justice system will start functioning, the state will take all steps to keep it efficient so that they could charge their part as soon as possible! We need an efficient judiciary system!

That is why we believe it is imperative to think about the future of Croatia right now, with the relaxation of measures, the opening of companies, and the market.

Considering these postulates, the following is crucial:

Tax reform, with the abolition of progressive taxation of labor, where, it turns out, everyone who earns more is penalized, and demotivated, as well as the employer who has to pay more for additional charges. We suggest a FLAT RATE 20% tax, with the minimum census (non-taxable part) of 5000 kn.
The level of entry into the VAT system should be a minimum annual income of 1,000,000 kn.
Profits reinvested back into the company should not be taxed.
Encouraging issuance and receipt of invoices, returning tax benefits that the entire modern world has, such as dentist visits, taking care of children in kindergartens, thus fighting the colossal danger that follows—the grey economy.
Abolition of ALL parafiscal charges, including mandatory membership fees in chambers and communities.
State Inspectorate should be the advisory and supervising body and not the repressive one.
Reorganization and reduction of public administration and local governments, which should be active public service.

Of the many trees—Government’s measures, their implementation, all kinds of ideas from all sides and concepts—we do not see a forest! We don’t see the critical problem that is happening now. We entrepreneurs are being made a social category, which we are not. Our task is to increase competitiveness, to make the profit in the market, to increase employment, and to fill the budget so we all could have the efficient public service and creation of new values. This is us, these are entrepreneurs, and it is up to us to adapt to both existing and tomorrow’s market conditions!

After each crisis, as well as after the one in 2008, bureaucracy increased significantly, along with the state expenditures. This time it SHOULD NOT happen. On the contrary, it is an opportunity to reduce bureaucracy!

Mr. Plenkovic, we sent you a letter where we ask for a meeting, we ask for it as soon as possible, urgently. Time is flying, our Voice must be heard, and this time the key topics should not and cannot be organized without us, entrepreneurs, self-employed, and employees in the private sector.

Hrvoje Bujas

President

Glas Poduzetnika Association

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The GLAS PODUZETNIKA Initiative started as a citizens’ self-organized group, most of which are small entrepreneurs, after the announcement of the first set of Government’s measures, which the organizers deemed insufficient. The Initiative assembled more than 100,000 entrepreneurs, small business owners, self-employed, and the employees in the private sector in less than 15 days, drawing the media spotlight with its uncompromising requests and appearances. Considering this, GLAS PODUZETNIKA positioned itself as a relevant factor in public discussions aimed to determine Croatia’s new economic direction. Its position was also confirmed by the Government of the Republic of Croatia, having included some of the Initiative’s suggestions in the second set of economic measures, thus confirming Initiative’s undeniable influence. At the request of the Initiative’s members, the GLAS PODUZETNIKA Association was created and received more than 6.000 applications for membership in a short time.

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