Around 2 billion in tax cuts will take effect in January of 2021 under the Croatian government’s latest round of rollbacks that aim to stimulate the economy during the pandemic.
Croatia is cutting income taxes and profit taxes, as well as introducing tax breaks for banks to counter the effects of the coronavirus pandemic.
Finance Minister Zdravko Marić said on Wednesday that the government plans to change excise taxes on motor vehicles because of new gas emissions regulations.
“Not only will we neutralize the increase given the new emission measuring system, but we will make additional tax cuts so that many vehicles, most vehicles, will be subject to a lower special tax. Of course, I am confident this is something distributors and car dealerships will clearly communicate to the public,” said Marić.
Income tax rates will come down from 36% to 30% and from 24% to 20%. Profit taxes for companies doing under 7 million kuna in business per year, which is 90% of all Croatian businesses, will be cut from 12% to 10%.
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