ZAGREB – The session of the Government of the Republic of Croatia (8 AM, NSK, Hrvatske bratske zajednice 4). The Government will send proposals for legal amendments to the Croatian Parliament defining the fifth round of tax reform, which among other things proposes reducing income tax rates from 24% to 20% and from 36% to 30%, as well as reducing the corporate tax rate from 12% to 10% for entrepreneurs with annual revenues up to 7.5 million kuna. The proposals for amendments to the Income Tax Act and the Corporate Tax Act, as well as amendments to the VAT Act, which would abolish exemptions from VAT payment for the import of low-value shipments (up to 22 euros or 1,125 kuna) from third countries, will be presented to the Government. The Government will also discuss proposals for amendments to the law on cash transactions fiscalization, and on the agenda are also proposals for laws on the deposit insurance system and on the forced liquidation of credit institutions, which continues the alignment of Croatian legislation with EU legislation. The Government will also send a statement to the Parliament regarding the interpellation about its work related to the Krš-Pađene wind farm project. The interpellation was submitted by the parliamentary club of the Homeland Movement, which, due to suspicions of illegality, requests the Government to provide the Parliament with all contracts and decisions related to the Krš-Pađene wind farm, as well as all decisions of the Ministry of Energy and Environmental Protection and HERA related to this project and decisions of the supervisory board of HBOR and HROTE. Ministers will also receive information on the current situation related to the coronavirus during the session.
ZAGREB – At the continuation of the 4th session, the Croatian Parliament will discuss the rebalancing of the State Budget, which plans budget revenues of 131.1 billion kuna, an increase of 9.2 billion kuna, while budget expenditures increase by 8.6 billion kuna, to a total of 155.9 billion kuna. Thus, the total budget deficit this year will amount to 24.8 billion kuna or 6.7% of GDP. However, when off-budget users and local government are added, the general consolidated state deficit according to the ESA 2010 methodology will amount to 29.5 billion kuna or eight percent of GDP (10 AM, Trg sv. Marka 6).
