ZAGREB, August 19 – The MOST party’ leader Božo Petrov said that a draft bill of amendments to the law on contributions on salaries was an unbearable blow to entrepreneurs in Croatia. “I cannot see any rational explanation of such move of the government,” Petrov said at a news conference in Split, describing the bill as shameful.
“This bill will literally eliminate small and medium-sized entrepreneurs as their contributions are to be doubled by 100%,” Petrov said.
MOST official Ante Čikotić said that such legislation would make it more difficult for start-ups to do business in the first year of their existence. Čikotić said that his opposition parliamentary party was drawing up a legislative solution that would free start-ups of taxes.
MOST accused the government of “complication of the tax system that is already very complex.”
The Croatian People’s Party (HNS), a junior partner in the ruling coalition, also voiced its criticism against the proposal for increasing the minimum salary level of executives in companies whereby contributions paid from gross mandatory salaries will also rise.
The HNS says it will give its proposals regarding this bill which, it says, encourages an anti-entrepreneurial climate.
The Croatian Employers’ Association (HUP) seems surprised by proposed changes that are supposed to increase the minimum salary level of executives in companies whereby contributions paid from gross mandatory salaries will also rise, and therefore the HUP urges the government to consider alternative solutions for this matter.
On Thursday, the Finance Ministry put to public consultation several draft bills, including a draft bill of amendments to the law on contributions on salaries
HUP finds that a possible increase in coefficients for calculating how much should be paid in contributions from higher gross mandatory salaries of executives and managers of companies would affect the performance of small and micro businesses and of start-ups.
The association calls on the government to base its draft proposal on the assessment of the effects of the projected changes.
Public consultation on the bill lasts until September 6.
