Abolishing Tax Breaks for Young Adults
Abolishing Tax Breaks for Young Adults
AmCham proposes retaining the tax relief for young people under 30 years of age in order to protect youth employability and economic development.
AmCham opposes the abolition of the tax relief for young people under 30 because it could reduce their employment. Despite the decline in unemployment, young people make up a quarter of the total unemployed, and without the relief, employers lose motivation to employ them. The measure stimulates employment and enables a higher gross salary, which affects the retention of young people in Croatia.
The abolition would increase labor costs, reduce investments and place an additional burden on employers due to the increase in the minimum wage.