ZAGREB, June 19, 2020 – The leader of the Social Democratic Party (SDP) and the centre-left Restart coalition, Davor Bernardic, said on Friday that if elected their government would not tax investment, would abolish the tax on reinvested profit and on wages of up to HRK 5,000, and would cut VAT on tourism and hospitality services to 10%.
Presenting the coalition’s election candidates for Constituency 10 in Dubrovnik, Bernardic said that only investment could change the structure of the Croatian economy and should therefore be boosted.
“The HDZ has imposed tax on investment, which is insane because it put us at the bottom of the EU. We must create a stimulating tax environment,” the SDP leader said, adding that after the tax on reinvested profit is abolished, businesses will be able to use their surpluses from the previous year to create new jobs.
Bernardic also stressed the importance of easing the tax burden on the tourism sector to make it more competitive in the Mediterranean.
