HUP supports announcements of further tax relief for entrepreneurs and citizens

The Croatian Employers’ Association (HUP) supports the announcements made by Prime Minister Andrej Plenković regarding the continuation of tax reform aimed at relieving entrepreneurs and citizens, as stated by HUP on Tuesday.

– HUP supports the Prime Minister’s announcements about the continuation of tax reform aimed at relieving entrepreneurs and citizens from January 2021 – they emphasized from HUP, reminding that in a recent survey among employers, the main demands towards the new Government were indeed directed in this way.

Regarding the announcements about the decision to increase the minimum wage, HUP supports the desire to enable workers to achieve a better standard because, as they point out, it is also in the interest of employers to retain quality workers and provide them with the best possible working conditions.

However, HUP reminds of the obligation to consult with social partners and the necessity of social dialogue as well as the need for a detailed analysis of the labor market situation before finalizing the decision itself. 

– In many manufacturing industries, such as the textile industry, employers are generally unable to raise wages further, especially in the current situation affected by the corona crisis. Therefore, it is important to carefully weigh all factors to avoid counterproductive effects and the shutdown of certain companies and further job losses – they state from HUP.

They also convey that HUP, as a social partner to the Government is available for constructive dialogue on this and other topics related to economic issues.

Prime Minister Andrej Plenković announced that the Government expects an active, working autumn, continuing the policy of tax relief for citizens and entrepreneurs. Tax reforms, as before, will come into effect on January 1, 2021, and it will be a continuity of the policy of relieving citizens and the economy, the Prime Minister said for HRT.  When it comes to the minimum wage and its increase, he announced that the decision on this will be made no later than early November.

The decision on the minimum wage is always made in the autumn, so that those it concerns can prepare, he explained, reminding that during his first Government’s mandate, that wage was raised by 754 kuna in net terms, while three governments before him raised it by a total of 250 kuna.

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