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Croatia tax revenue in May cut in half, PM expects more than 20 billion euros from EU

Christian Fernsby |
Croatian Finance Minister Zdravko Maric said that as of Tuesday tax revenues in May were half the amount of those last year while the value of fiscalised receipts was down 18% on the year.

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Topics: CROATIA   

Maric said that May was the month fully affected by the "lockdown" in the economy so it would be the most challenging one in terms of filling the revenue side of the budget.

As of Tuesday, according to the data from the fiscalisation system, the value of fiscalised receipts for May is down 18% on the year. There are differences between sectors, so hospitality, in spite of relaxation measures and terraces reopening, saw a decrease of about 60% in the value of receipts, Maric said.

On the other hand, the retail sector, especially when it comes to food supplies, is at approximately the same level as last year, he added.

Maric also said that with Tuesday tax revenues for May were half the amount of those last year. Until Tuesday, the amount of VAT refunds to be paid out the state budget to taxpayers was higher than that of tax revenues, and contributions were about 25% lower, he said.

As a silver lining when it comes to coronacrisis and tourism, Maric underscored the fact that the coronavirus pandemic happened during a period when tourism revenue was relatively low.

Asked whether the measure related to income tax and contributions will continue, he said that it had been legally defined to last three months, by June 20.

Prime Minister Andrej Plenkovic said that in the new Multiannual Financial Framework 2021 to 2027, Croatia would receive a little more than €10 billion, of which €7.3 billion are grants and HRK 2.65 billion are possible loans.

"We will get at least as much, and certainly more, because we will negotiate for a seven-year budget. In the next seven years, from 2021 to 2027, we will have more than 20 billion euros from the European Union for investments, development, balanced development of Croatia, jobs, economy, digitalization, for a green Croatia in terms of environmental protection and overcoming the crisis," said Plenković.

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