ZAGREB – New economic measures

Croatian PM Andrej Plenković has presented the second economic relief package tailored for entrepreneurs who are struggling amid the coronavirus crisis and taking account of the criticisms from the private sector.

The state will cover the minimum wage which has been lifted from HRK3,250 to HRK4,000 and is supposed to cover more than 400,000 workers.

Also, the state is going to cover all additional contributions for workers on condition that employers keep them in their jobs. This measure is worth 8.5 billion HRK. 

Businesses whose work has been challenged or disabled during quarantine will be exempted from all tax obligations for April, May and June. Those companies that are recording 20-50% lower profits can apply to postpone payment by up to 24 months. 

The third element of the package regards VAT payment, which will be charged only after the invoices will have been charged. PM Plenković, however, emphasised that this measure did not mean there would be VAT exemption.

Finance minister Zdravko Marić also presented an agreement reached with the banks which have agreed to allow credit moratorium for three months.

The deal is expected to be presented to the parliament by the end of the week.

(Tea Trubić Macan, EURACTIV.hr)

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