– You have agreed with the banks to compensate their losses at the expense of my work and that of all other honest citizens, Bunjac accused Minister Marić.
– Unlike what you are saying, that it helps credit institutions, the reform helps their debtors even more, Marić replied.
According to media reports, he specified that banks are permanently writing off receivables from their balance sheets, but citizens and entrepreneurs are also permanently writing off their debts to banks. They are freeing themselves from these debts and can start new business activities, the minister said.
As of June 30, the total amount of bad loans is around 40 billion kuna, which is about 16 percent of the total loans of 265 billion, Marić noted.
– There is a slight decrease, both in percentage and nominal amount, he said to Josip Borić (HDZ), who asked how many bad loans have been written off in two years.
Marić reiterated that there was never an intention to abolish the tax USKOK, i.e., the independent service for detecting tax fraud.
– There was never any intention to abolish it; on the contrary, in the hierarchical structure of both the Ministry of Finance and in comparison with other state administration bodies, it is growing, and as needed, we will not only strengthen it organizationally but also in terms of personnel, the minister replied to SDP’s Željko Jovanović, who questioned how to explain the abolition of the tax USKOK other than “as a return of services to HDZ donors.”
The SDP representative also claims that the package of tax laws only partially touches the entire Croatian society, that it is “intended to help” only those who need that help the least, namely the rich and capital. Jovanović, as well as IDS’s Gianni Sponza, criticize the government for the decision to raise VAT in hospitality, with Sponza stating that all negative effects of such a measure concerning employment, the renewed growth of the gray economy, and putting domestic tourism at a disadvantage compared to competition have not been considered. Marić responds that the government recognizes the importance of tourism and emphasizes that Croatia, alongside Portugal, is the cheapest Mediterranean destination in the hotel and restaurant segment.
– Price competitiveness is not the decisive factor, or rather, VAT is not the only and decisive factor for price competitiveness, says Marić, convinced that hospitality will recognize other benefits that the tax reform brings.
The minister, responding to Tomislav Žagar’s (SDP) concern for Slavonia, assures that Slavonia is indeed recognized in the government’s program, and that the lower VAT rate on inputs for agriculture will reduce business costs, especially for small producers. Miro Bulj (Most) calls for the merging of blue and green Croatia, the Adriatic and Slavonia, tourism and agriculture. The finance minister responds that the current government is not the first to promote this concept, but it will “be the first to ultimately succeed in implementing it.”
Nenad Stazić (SDP) asked the minister what good lies behind the abolition of the zero tax rate for the purchase of the first property, seeking an explanation for the abolition of the tax relief for reinvested profit. What interest do the unemployed have in protecting the interests of corporations now, he asked the minister.
– I never said that the abolition of the relief for the purchase of the first property is a great measure, Marić replies, announcing measures that will facilitate young families in obtaining loans at subsidized interest rates.
Branko Hrg (HDS/HSLS) advocates for a reduction in VAT on diapers, and Branimir Bunjac (Living Wall) agrees with him. – Tax relief for car seats is an insufficient demographic measure, which I could even call bizarre, he stated and announced an amendment in that sense.
