Croatian entrepreneur groups demand halt to proposed small‑business tax hikes

The Udruga Glas poduzetnika (UGP), together with the association Spasimo male obiteljske iznajmljivače (SMOI), submitted a memorandum to the Ministry of Finance asking for an immediate suspension of draft changes to the flat‑rate tax regime for freelancers and family landlords. The groups call for a public impact assessment and a dialogue before measures that could affect tens of thousands of legal taxpayers are adopted. They argue that the proposed increase in the minimum flat tax per tourist‑bed – from €100 to €150 in the most visited areas and from €70 to €100 elsewhere – would disproportionately burden small operators, even if it is projected to raise about €60 million in state revenue. The petition “Ne novim nametima!” was signed by more than 37,000 entrepreneurs, craftsmen and landlords.

The Croatian Employers’ Association (HUP) warned that a planned tax on “excess profit” would penalise small firms that are already cutting investment. HUP says the measure could curb spending on technology, automation and research, and stresses that taxing high‑profit margins at a time of slowing GDP growth would send the wrong signal to the business community. Both organisations urge the government to consider alternative fiscal tools and ensure equitable tax treatment across the economy.