ZAGREB, November 30, 2020 – Economy Minister Tomislav Coric said on Sunday evening that during the weekend, the government’s delegation led by Finance Minister Zdravko Maric had listened to the proposals of employers for measures to ease their situation after the imposition of tighter anti-COVID restrictions.
Coric told the RTL commercial broadcaster that the government was fully aware of the adverse impact of the latest epidemic prevention measures on certain businesses and that the government would propose compensatory measures on Monday.
We will continue implementing the scheme of grants in the amount of HRK 4,000 per employee per month, the minister said and that employers will have access to the so-called COVID loans and that some of their fixed costs would be covered through the assistance provided by the government.
All those proposals will be discussed during their meetings on Monday.
HUP expects gov’t to accept one of their models of compensation
The Croatian Employment Association (HUP) said on Monday morning that they would insist on the the acceptance of any of the two models presented by bar and restaurant owners last Thursday to help them survive the new partial lockdown, saying that otherwise many of them would go bankrupt.
The first model envisages long-term compensation by slashing VAT to 5% for three years and to 13% over a longer term, and providing job-retention aid until April 2021, i.e. HRK 4,000 per employee and writing off taxes and contributions until 1 May 2021.
They also proposed compensation of €10 per square metre of their establishment, COVID loans to ensure liquidity for three years and a moratorium on loan payments for businesses which are not allowed to work.
The second model envisages ensuring revenue for entrepreneurs in the amount of 50% of their turnover at the same time last year as a direct grant which would also be used for salaries, including a contribution write-off.
This model also envisages exemption from all fixed liabilities for the duration of the lockdown, including rent and utilities. Exemption from parafiscal levies was also proposed.
