Although party squabbles could not be avoided this time either, eminent Croatian entrepreneurs were able to hear the reflections of the largest parties on the problems faced by employers such as excessively high taxes, ineffective public administration, overly restrictive labor legislation, and minimum wages.
The front row of the Croatian Employers’ Association’s panel on the economic programs of political parties that should characterize the upcoming elections vividly illustrated the business community’s interest in the programs they intend to offer if they gain power at the end of November. The presentations of the parties were attended by directors and CEOs of T-HT, Medika, INA, PBZ, Croatia Airlines, Atlantic Group, Orbico, and Sem Marine, as well as many other successful entrepreneurs. Their views on the future of the Croatian economy were presented by Damir Polančec, Ljubo Jurčić, Radimir Čačić, Davor Štern, Marko Kolaković, Damir Friščić, and Vladimir Jordan on behalf of HSU.
The discussion was designed on the principle of debates in the USA, where each speaker has a precisely defined time for response, but it did not take long for the leading parties (HDZ, SDP, HNS) to seek a little more time. For over two and a half hours, the parties tried to explain to employers what steps they would take to improve the conditions under which Croatian entrepreneurs operate. -I believe that the economy should be in the foreground, as only an economically developed country can guarantee its citizens a better standard of living. It would be better if we were recognized as a small country for big business instead of a small country for a big vacation, said Damir Kuštrak, president of HUP, at the opening of the discussion. How to reduce the budget increase while increasing GDP was the first topic addressed by the attendees, and the consensus of the majority was that the budget increase should be reduced by restructuring the way it is spent, thus creating room for new investments.
On the burning issue of Croatian employers, income tax rates and the introduction of only two uniform rates (15 and 25 percent), as well as the reduction of contributions from 37.5 percent to 30, the parties have different opinions. -We will abolish the tax on reinvested profits and consider the purpose of certain types of fees that burden the economy, said Ljubo Jurčić.
Mladen Kolaković from HSP believes that tax burdens should be reduced to encourage investments and that the gray economy should be taxed to generate new funds, while Davor Štern believes that tax policy should be decentralized to evenly distribute revenues across regions. Regarding the reform of the tax system and the reduction of VAT, which HUP advocates (from 22 to 20 percent), most interlocutors agreed that a simple reduction of VAT is difficult to implement, and each of them would resolve tax policy differently. Thus, HSLS and HSP advocate for a single rate, the so-called Flat tax, HNS would abolish hidden, parafiscal levies, while HDZ believes that the tax system is good, and SDP would reduce the value-added tax.
