HUP: This is the 10 most problematic levies in Croatia (and 11 more bizarre ones)

Following the intention of this Government to address the burgeoning list of parafiscal levies in Croatia, the Employers’ Association decided today (April 20) at a press conference to present the ten most problematic levies for them, along with an additional 11 that they consider simply bizarre.

The President of the Association, Gordana Deranja, noted that employers are not against levies as such, but they want their reduction and transparency in their use. As explained by the CEO Davor Majetić, HUP seeks the introduction of control over the adoption, determination, collection, and use of these fees. From the Government, added Deputy CEO Bernard Jakelić, they expect a systematic approach to solving this problem, as several governments have so far mainly listed the levies, but little has been done beyond that.

Ivan Gregov, a member of the Executive Board of HUP-Pharmacists’ Association, warned about the completely unannounced introduction of the obligation to pay membership fees to the Croatian Chamber of Commerce (HGK) by pharmacists, even though they have their own chamber. ‘It is not logical for us to be present in HGK; our parent chamber is the Croatian Pharmaceutical Chamber, which defends our interests, so we do not see the purpose of HGK itself. The most incredible thing in this whole story is that they made a complete turnaround by a decision based on the same legal frameworks. Namely, the letter from 2012 that we received from HGK confirms that we are not obliged to pay this fee. Without announcement and letter, without an invoice, we received a cost from HGK on tax cards,’ he said.

The Secretary of the Croatian Pharmaceutical Chamber added by questioning the legal basis of this decision, which has been applied since this year. ‘The law that prescribes who is obliged to pay HGK membership fees is from 1991 and has not changed to this day. It is explicitly stated in the Law that pharmaceutical services are not obliged to pay fees to chambers because they perform health, not economic activities and are part of the public health service. HGK itself explicitly confirmed the same thing in a letter when we asked them about the obligation to pay membership fees. It is absurd that someone remembered a few days ago to charge tax cards for something that happened three months ago and without a basis in the Laws.’

In front of the Croatian Bar Association, the decision of HGK was commented on by Robert Travaš, the president of HOK. ‘The position of the legal profession is different from all. HGK has started charging this membership fee to law firms that are registered as d.o.o. in the court registers. Here, basic facts are ignored – the legal profession is regulated as an independent and autonomous service providing legal assistance under Article 27 of the Constitution and they are obliged to pay membership fees to the Bar Association, which takes their license, grants the license, and constitutes the basis of that independence,’ he explained the position of the Chamber.

List of levies

– Water management fee (509 million kuna paid by entrepreneurs in 2014), it is proposed to abolish Tariff Class 2/reduce in Tariff Class 1

– Membership fee in tourist boards (215 million kuna in 2014), it is proposed to further reduce for those companies that do not benefit from it and a more efficient collection system

– Membership fee in HGK (144 million in 2014), it is proposed to actually reduce (the scope has been expanded to all economic activities regardless of organization) the fee for all members and gradual abolition

– Monument rent (104 million kuna in 2014), it is proposed to further reduce the fee and the circle of obligors

– Fee for the public utility function of forests (172 million kuna in 2014), it is proposed to abolish and finance through taxes

– Annual fee for the use of public roads (355 million kuna in 2014), it is proposed to further reduce in all segments

– Utility fee (2.1 billion kuna collected), it is proposed to legally limit the maximum amount of the utility fee which would be adjusted to, for example, the consumer price index or other official parameters

– RTV fee in the transport segment (140 million kuna in 2014), it is proposed that the Law on HRT be amended so that legal entities have an obligation to pay the RTV fee in the amount of a maximum of one monthly fee for radio or TV receiver annually; for official vehicles – that the collection is arranged so that the RTV fee for legal entities is charged for the entire year in one monthly amount upon registration of the official vehicle

– Fee for the realization of the right of servitude and construction (this refers to the financing of public roads, 90 million kuna in 2014), it is proposed to reduce the level of the fee so that it ultimately amounts to less than 90,011,367.25 kuna for an expanded circle of obligors

– Fee for not fulfilling the quota for employing persons with disabilities (30% of the minimum wage for each person with a disability that they were obliged to employ, and it must be paid by the last day of the month for the previous month and reported on the JOPPD form), it is proposed to abolish as the measure has not achieved any goal and to encourage the employment of persons with disabilities in another way that does not go in the direction of punishment, but rather helps employers in employing persons with disabilities through more attractive tax and other measures.

List of bizarre fees

– Fee for issuing permits for inter-county lines – general revenue of the state budget – 92,100.00 kuna in 2014 (validity period of the permit 5 years).

– Fee for issuing permits for county lines – revenue of county budgets – 350,000.00 kuna in 2014 (validity period of the permit 5 years).

– Fee for issuing a permit to a domestic or foreign carrier for performing scheduled transport on bilateral or transit international lines – general revenue of the state budget – 185,000.00 kuna in 2014 (validity period of the permit 5 years).

– Fee for harmonizing new and amended timetables for inter-county and international lines – revenue of HGK – 1,967,400.00 kuna in 2014.

– Fee for harmonizing new and amended timetables for county lines – revenue of HGK – county chamber – 1,797,000.00 kuna in 2014.

– Fee for checking the completeness of documentation in the procedure of amending the decision on the registration of plant protection products – revenues are shared: 60% to the Croatian Center for Agriculture and Rural Development, 20% to the Institute for Medical Research and Occupational Medicine, 20% to the Ministry of Agriculture – 8,800.00 kuna in 2014.

– Fee for authorizing legal entities to meet prescribed conditions for the production of general use items – general revenue of the state budget – 27,820.00 kuna in 2014.

– Fee for the costs of printing results and sending by mail – revenue of the Croatian Agricultural Agency – 808,938.94, of which entrepreneurs 116,449.02, all in 2014.

– Fee for various certificates and identification documents – revenue of the Croatian Agricultural Agency – 548,879.75 kuna, of which entrepreneurs 109,683.84, all in 2014.

– Fee for registration labels for marking and maintaining fire extinguishers – general revenue of the state budget – 3,064,321.00 kuna in 2014.

– Fees for testing fire extinguishing agents, servicing fire extinguishers, testing fire extinguishing systems, testing fire clothing and footwear, testing fire vehicles – general revenue of the state budget – 256,344.19 kuna in 2014.