Finance Minister Zdravko Marić stated on Saturday that the Government will submit a proposal for amendments to the Local Taxes Act to the Croatian Parliament from its session on Thursday, which will include a delay in the introduction of the property tax, previously announced to take effect from January 1 of next year.
Unlike the utility fee, revenue from the property tax would be general revenue, which could be used to build kindergartens, co-finance projects from EU funds, and other significant projects in the city or municipality.
On Thursday, all details related to the delay in the introduction of this tax should also be known; as previously announced, this will be the topic of public discussions, panels, and presentations, Marić stated in tonight’s RTL Danas show.
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He reiterated that the property tax was not intended to be a new tax, but rather an integral part of the overall tax reform through which the Croatian economy and citizens have been relieved of more than two billion kuna.
In the meantime, citizens continue to pay the utility fee, direct monument rent, and tax on vacation homes, he added.
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He also reiterated that the intention was for this to become non-targeted revenue for cities and municipalities, unlike the current utility fee, which can only be used for the construction and maintenance of communal infrastructure.
“General Revenue”
Unlike the utility fee, revenue from the property tax would be general revenue, which could be used to build kindergartens, co-finance projects from EU funds, and other significant projects in the city or municipality.
He emphasized that this government has clearly stated that it does not plan to introduce a value tax on properties.
“We started from the existing system that we want to improve because it is not fair that two properties next to each other, with a difference in age of about 50 years, pay the same levy, which is currently the case,” concluded Marić.
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The Finance Minister confirmed to a journalist’s statement that this year’s tourist season has broken all records and that the results are good.
We will wait a little longer for the financial indicators, but I see them every day together with my colleagues in the ministry, emphasized Marić.
He added that they expected a good season as announced by Tourism Minister Gari Cappelli and others. “Overall, the forecasts were good, and in some indicators, even above expectations,” he added.