HOK: Government Measures Will Enable Business Stability

The Croatian Chamber of Trades and Crafts (HOK) stated on Thursday that the latest government package of measures for the protection of households and the economy will enable the business sector, particularly crafts, to maintain business stability.

– The latest government package of measures for the protection of households and the economy from rising prices in response to the global energy crisis and inflation will undoubtedly allow the entire business sector, especially crafts, to maintain business stability in the upcoming period – stated HOK Vice President Joso Smolić in a press release.

Prime Minister Andrej Plenković presented the fourth package of government assistance measures for citizens, institutions, and businesses on Tuesday, worth 1.7 billion euros. The largest part of the package relates to mitigating the rise in energy prices, for which the state will provide nearly 1.2 billion euros, 169 million euros is allocated for inflation protection, and 347 million euros for special subsidies and incentives. Among other things, the package of measures stipulates that the price of electricity for households, the public and non-profit sectors, small businesses, and entrepreneurs will remain at the current level until the end of September, while the price of gas will not change until April next year, and most other measures will remain in effect for the next year.

HOK also emphasizes the government’s decision that the vast majority of measures from the latest package will last for the next year, which HOK has strongly advocated for.

– Regarding the measures to mitigate energy prices, amounting to nearly 1.2 billion euros, they are timely and will ensure a certain level of security for us craftsmen, as it should be noted that out of 105,000 active crafts, nearly two-thirds are crafts that fall into the category of electricity consumers with semi-annual consumption of up to 250,000 kilowatt-hours (kWh). Therefore, all of them will have a lower electricity price in accordance with government measures compared to the rest of the economy – emphasized Smolić.

He stated that the guaranteed lower electricity price, the reduced VAT rate of five percent on gas, and gas subsidies, along with other support and incentives, will enable craftsmen to plan their pricing policy and wage increase policy for employees, of which there are currently about 100,000 employed in crafts.

Smolić also announced that HOK will continue to discuss and negotiate with the government and relevant ministries in order to achieve certain reliefs in the operations of craftsmen.

– However, I emphasize that the cities and municipalities are now at bat, as their decisions regarding the level of fees and prices in the domain of communal services also significantly affect the operations of us craftsmen and small entrepreneurs – stated the Vice President of HOK in the press release.