Joint Statement of Bilateral Chambers – Proposal of the Windfall Tax Act

The American Chamber of Commerce in Croatia, Canadian Croatian Business Network, German Croatian Chamber of Industry and Commerce and Nordic Chamber of Commerce in Croatia, which bring together the majority of foreign investors in the Republic of Croatia, strongly oppose the announced windfall tax proposed by the Government of the Republic of Croatia, which would, contrary to the recommendations of the European Commission, also apply to industries outside the energy sector. 

The Bill amending the Windfall Tax Act does not contribute to the necessary economic stability in these make-or-break moments for the future of business. We want to highlight that the Bill does not encourage foreign direct investments and/or reinvestments by foreign companies already operating in Croatia. Implementing the Bill would additionally complicate the attraction of foreign investments and reduce the competitiveness of the companies operating in Croatia.  

In this respect, we believe that this Bill amending the Windfall Tax Act, directed at companies with revenue greater than HRK 300 million in 2022 and at a rate of 33% on profits above 20% in comparison with the four-year average, is clearly discriminatory and does not contribute to a just economic recovery.

In the upcoming challenging times, especially for businesses dealing with significant disturbances in the market due to the Russian aggression against Ukraine, close cooperation between the public and private sectors is needed in order to resolve economic problems more successfully. 

We, therefore, invite the Government of the Republic of Croatia to consider the opinions of our associations and, in cooperation with the business community, find a way to introduce efficient measures for alleviating the negative consequences of the crisis and create economic conditions for recovery.