13:42 / 07.06.2022.

Author: Branko Lozančić

SDP presents package of anti-inflationary measures

Siniša Hajdaš Dončić

Siniša Hajdaš Dončić

Foto: HTV / HRT

On Tuesday, the Social Democratic Party unveiled a comprehensive package of measures to fight inflation; with party President Peđa Grbin saying it must ensure that everyone in Croatia can survive inflation.

“We must take measures that will ensure that entrepreneurs can function and citizens can survive,” said Peđa Grbin, presenting the Social Democratic Party’s 'comprehensive package of measures to mitigate the impact of inflation'.

“Inflation affects everyone, but it does not affect everyone equally, those with the lowest incomes are affected far more,” added Grbin at a press conference at the party's headquarters.

The Social Democratic party is therefore proposing to increase the non-taxable part of income to 5,000 kuna, which, they claim, would be much more efficient than reducing Value Added Tax. They also suggest new ways of adjusting pensions so that pensions do not lose value, the payment of inflationary allowances for pensioners and employees, as well as an increase in social benefits such as allowances for other people's help and care.

“These measures represent protection, a kind of shield of the most endangered in Croatian society,” said Grbin.

When it comes to small and medium-sized enterprises, Social Democratic Party MP Boris Lalovac called for an increase in the non-taxable threshold for entering the Value Added Tax system from 300,000 to 350,000 thousand kuna. He also proposed raising the fee for the use of a personal car for official purposes from two to 3.5 kuna.

In addition, the Social Democratic Party called for the use of aid intended for entrepreneurs who lost their markets due to the war in Ukraine.

The Social Democratic Party is also advocating for a so-called solar revolution, or stimulating the installation of photovoltaic cells, while enabling cheap lines of credit.

They also called on the government to act towards the European Commission in order to change the EU directive which prescribes the minimum amount of excise duty on fuel. They claim that the government has instruments to mitigate inflation and that it has the financial space, because the state budget is filling up better than expected.

“A responsible state should return that money to citizens and the economy,” said Social Democratic Party members.

The vice president of the party, Siniša Hajdaš Dončić, and the leader of the party's Economic Council, Josip Tica, also spoke about measures.

Grbin also commented on the announcements of certain retail chains that there is a possibility of a shortage of gasoline and diesel, and after the latest measures of the Government to limit margins and reduce excise duties.

“The INA oil company is at the top in terms of profit in the previous year, and the company that controls INA, Hungarian MOL, subsidizes Hungarian consumers with the price of fuel and where do they get the nerve to threaten shortages in Croatia, from where they extract oil on extremely favorable terms,” said Grbin. He assessed this as pressure on the Government to give up, what he called, “the rarely good things it has done.”

“There is still room for excise duties and in joint communication with the EC they can reconsider the lowest amount of excise duties on fuel and the lowest amount of Value Added Tax, which can be applied. These are our concrete proposals for these times of crisis,” said Hajdaš Dončić.

Source: HRT

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