ZAGREB, February 27, 2018 – The president of the Croatian Exporters association Darinko Bago said on Tuesday that exporters were extremely unhappy with the lack of an agreement on the avoidance of double taxation with the US and that they were also unhappy with the central bank’s exchange rate policy.
Speaking at the association’s 13th assembly, Bago said the bulk of the capital came from US funds. If we really want to be on the front line of capital accessibility, we must first and foremost get that capital from the US, he added. “Since tax is paid on that capital in the US, Croatia is actually getting second hand capital (which) is somewhat more expensive, is not as propulsive and… does not represent what would be interesting to us.”
He said that a globally successful Croatian company must open a centre in a country which has an agreement with the US on avoiding double taxation so that it can collect capital on that market, Bago said.
Exporters are also unhappy with the exchange rate policy and, while they support Croatia’s joining the euro area as soon as possible, they fear that a possible appreciation of the kuna would be detrimental to exports, he said.
Speaking of relations with the Croatian Bank for Reconstruction and Development, Bago said it started to lend too much for tourism and too little for exports.