Entrepreneurs' association slams government tax hikes

A prominent entrepreneurs' association has criticized the government's latest anti-inflation measures and announced a strike, citing growing dissatisfaction with the state of the economy.

The group says that increasing the tax burden on small businesses, particularly seasonal renters, could push many into the informal economy.

Bruno Samardžić, president of the Voice of Entrepreneurs Association, said Croatia's economic situation is continuing to deteriorate, while the cost of living keeps rising.

"But what are citizens getting in return? Better living standards? Better public institutions? Better schools? Better healthcare? How is the government using that money to improve people's lives? The state budget has doubled over the past five years. What have citizens received in return for a budget that's twice as large?" Samardžić said.

He added that the association would soon announce details of a planned public strike.

Prime Minister Andrej Plenković was quick to respond to the criticism, saying the government regularly intervenes to support the economy and improve citizens' quality of life.

"This is not about increasing the tax burden. On the contrary, it's about creating a fairer tax system. Claims that the government is simply raising taxes on businesses are false. During times of crisis, we repeatedly reduced VAT — from 25 percent to 13 percent, then to five percent, and even to zero for certain goods and services. Let's not forget that," Plenković said.

He also pointed to measures such as fuel price caps as examples of government intervention aimed at protecting citizens and easing the cost of living.