AFTER Prime Minister Andrej Plenković's announcements that the government will not give up on introducing a new, higher profit tax, HUP sent it a public appeal to nevertheless abandon it and to sit down with entrepreneurs at the table in order to agree on measures that will ensure a milder impact of the crisis that is at Croatia's doorstep. 

“At a time when the key question is how extensive the crisis that will hit us next year will be, the introduction of a new profit tax would put entrepreneurs in a very difficult position.

Over the past three years, the government has been our ally in overcoming exceptionally demanding circumstances brought by the coronavirus and energy crisis, so we call on the government to continue working on joint solutions and measures to fight the crisis that awaits us from 2023.

Croatia must prepare to face the consequences of the expected recession in our main export markets. The introduction of a new profit tax, outside the framework recommended by the European Commission, will halt investments and employment as well as further wage growth, which are circumstances that fuel recession and a potential economic crisis”; HUP said in a statement.

“The situation is dramatic”

“How dramatic the situation is is best described by the fact that orders to Croatian companies coming from Germany have largely stopped. In this period in previous years, orders from our most important export market were in full swing, while now the situation is completely different. The same scenario applies to orders from Austria, Italy, and the other largest Croatian export markets.

This is a consequence of the crisis taking place in the European economy, so the threat of the crisis at Croatia's doorstep is more than serious. That is why we appeal to the government to discuss solutions that will help the Croatian economy cope with the strong blow that awaits us. This is important for further investments and preserving jobs in the demanding years to come,” said HUP's chief executive Irena Weber.

Source: index.hr