CEA Analysis: What the Plans of Political Parties Show for Economic Relief

The Center for Public Policies and Economic Analysis (CEA) has published all the plans of political parties for economic relief. In doing so, it is possible to compare how different parties are tackling the pressing issue of economic relief.

CEA has analyzed political programs and compared how Bandić Milan 365 (BM365), Croatian Democratic Union (HDZ), Croatian People’s Party (HNS), Croatian Peasant Party (HSS), Croatian Pensioners’ Party (HSU), Most, Social Democratic Party (SDP), and the Pametno party plan to relieve the economy.

All parties advocate for income relief, an increase in the threshold for the highest rate and non-taxable income, as well as for parafiscal relief. HDZ would lower the highest rate to 36%. Pametno supports the introduction of a single rate of 20% up to one million kuna annually, while Most advocates for the introduction of 4 progressive rates, with the highest at 50%.

HDZ and Pametno want to liberalize service markets, which is also a legal obligation of the European Union, while Most and Pametno support the liberalization of the labor market, and BM365 is against it.

Pametno, Most, and HDZ are lowering the corporate tax. The People’s Coalition, HDZ, and Most support the retention of special incentive schemes for investors. HDZ is the only party advocating for a reduction in VAT (to 23% in 2020). The deficit will primarily be covered through expected GDP growth, i.e., revenue. Pametno only counts on reducing expenditures as a remedy for covering the deficit (reducing wage mass, material costs, and subsidies), analyzes CEA.

To read how the parties are addressing the reduction of other taxes, the introduction of reliefs and exemptions, and what they offer in their programs regarding other fiscal, parafiscal, administrative, and liberalization reliefs, visit the official website of the Center for Public Policies and Economic Analysis.