In response to Prime Minister Andrej Plenković's recent statement, the Croatian Association of Entrepreneurs (UGP) has emphasized that assistance to the economy is not a gift from the government, but a responsibility of the state, which entrepreneurs and citizens fund through taxes and contributions. The UGP reiterated its call for serious analyses regarding how the state spends public funds, criticizing the government’s approach to increasing tax burdens on small businesses and self-employed individuals. According to the association, the financial support provided during past crises was funded by taxpayers, not the government’s budget, and they expect the same level of dialogue and reasoning when addressing new tax measures. The UGP rejected the prime minister’s claim that entrepreneurs remain silent when the government limits energy prices but become vocal only when required to pay more. They argued that entrepreneurs fully understand the importance of energy interventions, but these funds come from their own pockets, taxes and contributions paid by citizens, artisans, and entrepreneurs. While grateful for previous measures that helped preserve the economy during major crises, the UGP stressed that the same level of engagement should be applied when warning about the consequences of new tax burdens. The UGP criticized the government for labeling increases in taxes on tourist beds as symbolic, pointing out that such increases represent substantial percentages for families already paying other fees like tourism levies, property taxes, membership fees, utilities, maintenance costs, and platform commissions. For instance, raising the tax from €100 to €150 represents a 50% increase, while moving from €70 to €100 is over 40%. This is particularly problematic for families operating only 45 to 60 days per year, who face higher expenses and lower revenues. The UGP also highlighted the absurdity of placing Dubrovnik and smaller towns with inadequate infrastructure into the same tax bracket. These smaller towns have shorter tourist seasons, lower prices, and higher operational costs compared to well-developed tourist centers. Yet, they are taxed as if they operate in the most developed tourist areas, despite lacking basic services like sewage systems, ambulances, water supply, walking paths, or regular transport links. The UGP questioned what citizens and entrepreneurs receive in return for a nearly doubled state budget. Are public services twice as efficient? Are permits faster, justice better, administration simpler, and healthcare more accessible? Entrepreneurs face penalties for delays, while institutions rarely face consequences for their own delays. The UGP warned that the announcement of an autumn protest is not political theater but a response to a policy that increases taxes on certain groups while others are left unaffected. Today, it is the self-employed and small rental operators facing changes, but tomorrow it could be someone else. The UGP remained open to dialogue but insisted on serious analysis, fairness, stable rules, and clear answers about how the state spends money. If genuine dialogue does not occur, preparations for the autumn protest will continue. The UGP concluded that the state exists because of its citizens, not the other way around. Those who contribute to the budget deserve respect, predictable rules, and decisions based on analysis rather than assumptions that they can always pay more. The Fokus party responded to the prime minister’s proposal to abolish measures that set fuel prices every 14 days, supporting this move but simultaneously calling for the removal or significant reduction of taxes and duties on fuel. Fokus argued that fuel prices should not depend on political decisions, phone meetings, or temporary regulations. Instead, an open market, real competition, and clear rules for all are needed. However, if the government truly wants to test how much it can help citizens and the economy, it must not stop at abolishing price controls. It should also eliminate or significantly reduce taxes and duties on fuel, as these constitute a large portion of the final price paid at gas stations. Fokus leader Gabrijel Deak stated that if the prime minister is serious about abolishing measures, he welcomes the suggestion. But he urged going further, abolish administrative pricing, and let the state give up part of its revenue collected from each liter of fuel. He noted that citizens and entrepreneurs today pay not just the cost of oil and the trader’s margin but also high taxes and VAT. The state takes a significant portion of the final price paid at gas stations. Therefore, his simple proposal is to abolish the government’s control over prices while also abolishing taxes and duties on fuel during periods of high energy prices. Bruno Samardžić, president of the UGP, commented on the easing of tax changes for self-employed individuals, the government’s attitude toward small entrepreneurs, anti-inflation measures, the UGP’s demands to be included in decision-making processes, and the policy of fines imposed on hospitality providers and entrepreneurs. Samardžić emphasized that the UGP continues to demand inclusion in decisions affecting small entrepreneurs, stating that they have done their part by extending hands and attempting to reach agreements. They have sent letters before the minister’s press conference and will continue doing so, targeting both the Ministry of Economy and Finance. Their letters aim to ensure their inclusion in future steps and consultations in shaping policies. Samardžić added that the UGP believes it deserves a place at the table when making decisions that affect small entrepreneurs, as they represent specific interests not adequately represented in the public sphere. He acknowledged that the Croatian Employers’ Association (HUP) and the Croatian Chamber of Artisans (HOK) have different interests, but he stressed that the interests of one group should not come at the expense of another. Small entrepreneurs have their base and must be included in discussions. While HUP has its policies and channels, ultimately, it is the small entrepreneurs who have a voice. The UGP has legitimacy through its presence on social media and in public discourse, with over 90,000 members in Facebook groups and other platforms. Samardžić pointed out that the UGP has submitted analyses of proposed measures to the government, warning about potential consequences. He emphasized that these measures would not reduce inflation in Croatia, noting that the government labeled them anti-inflationary measures because they could not be called fiscal measures. He argued that increasing business costs would have the opposite effect, potentially discouraging entrepreneurship and pushing people away from self-employment.
★
Keep the news honest.
ObjectiveNews is reader-funded and ad-free — we show you the bias instead of hiding it. Support independent journalism for €4/month.
Become a Supporter
Croatia
