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Sučević: Do you want to equalize craftsmen and entrepreneurs? No problem: reduce the burdens on craftsmen

If the logic was to equalize craftsmen and micro-entrepreneurs, why not reduce the burdens on craftsmen, said Danko Sučević, an economic analyst, commenting on the proposal of the new Law on Contributions which would increase the salary calculation coefficient for directors from the current 0.65 to 1.1.

– This directly means that if someone wants to engage in entrepreneurship, they must secure approximately 40,000 kuna at the very beginning to pay the state, said Sučević.

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When asked if this undermines the purpose of j.d.o.o. companies, Sučević replied that it does not undermine the purpose, but it is a step in the opposite direction. Instead of facilitating business for micro-entrepreneurs, the opposite is being done, he claims.

– Micro-entrepreneurs are largely entrepreneurs out of necessity, those who have lost jobs where they earned approximately four to five thousand kuna. Regardless of their success, income, and profit, they must secure money for the state. In most cases, it is not the case that you have guaranteed income as soon as you open a company. Sometimes you have an initial four, six, or twelve months without any income, especially if you are engaged in software development. During that period, you work for free, friends or family who help you work for free, but the state, well, you have to pay, adds Sučević.

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– This is not something new: it had to be paid before, only now that amount is almost doubled. This is a step in the wrong direction, we are further burdening micro-entrepreneurs whom we should generally be encouraging more. And if there was some logic behind this to equalize the contributions of craftsmen and micro-entrepreneurs – no problem, let’s equalize them, but in a way that reduces the burdens on craftsmen, concludes Sučević.