New position paper “Comment on Bill amending the Windfall Tax Act”

AmCham Croatia has been advocating for the reduction of the tax burden and the predictability of tax regulations for years. The announcement of the introduction of a new additional income tax goes against the positive results that the Republic of Croatia has achieved through several rounds of tax reform, counteracts the efforts of the Croatian Government dedicated to achieving tax certainty and predictability, and jeopardizes Croatia’s position as an investment destination. 

The context which led to the Government’s discussions on the introduction of a tax on windfall profits, which would help regulate speculative energy prices, is understandable, however, introducing a windfall tax for the industries outside the energy sector is contrary to the recommendations of the European Commission, and no EU countries have adopted such a proposal in practice, except for Hungary.

The introduction of new taxes, which financially impact the economy at the end of the year for the current year, will not, therefore, result in a just distribution of the burden caused by the energy crisis but in serious negative consequences for businesses and the economy. 

AmCham’s comment on the windfall tax is available here.