BUSINESS: Tax Reform First on New Government’s Economic Agenda  

sabor_vlada30-19101624 October 2016, VG Intelligence Weekly Issue 27

On 19 October, a new Croatian Government was formed, with 91 (out of 151) MPs giving their vote of support to Prime Minister (PM) Andrej Plenkovic (HDZ) and his Cabinet of 20 ministers. The vote in the Parliament (i.e. Sabor) was the culmination of a month-long process, since the 11 September parliamentary election, which resulted in Plenkovic negotiating with his now coalition partner, the Bridge of Independent Lists (MOST), and playing the politics of ministerial chess to put together his top team. Plenkovic used his acceptance speech in front of the Sabor General Assembly to set out his Government’s immediate goals. “Entrepreneurship is the foundation of economic growth”, said Plenkovic, reiterating that the next 12 months were crucial to giving Croatia the growth boost it needs. His immediate focus will be on making Croatia a business-friendly country, with an extensive reform of the tax code as his top priority.  According to the PM, the tax reform will engulf all aspects of the tax system and will be aimed at simplifying the system, widening the tax base and lowering taxes for citizens and entrepreneurs. “The purpose of this extensive reform is to create a stable, sustainable, simple and competitive tax system”, explained Plenkovic. Specifically, Plenkovic plans to simplify tax administration by lowering bureaucratic and accounting costs, and reducing the number of required tax forms for citizens and businesses…

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