Examples include last-minute VAT changes in 2013 and unannounced excise duty increases on tobacco, both of which harmed competitiveness.

AmCham emphasizes the need to implement the principles of “better regulation”—policy-making based on evidence, transparency, and stakeholder involvement throughout the entire cycle, from planning to evaluation. Currently, Croatia applies only minimal elements of better regulation, lacking fiscal planning, structured consultations, and comprehensive impact assessments.

Recommendations:

• Long-term: establish a proper impact assessment system, designate a responsible institution, involve external experts, and announce tax measures well in advance.
• Short-term: publish fiscal plans after system analysis, involve stakeholders in working groups, extend public consultations to at least one month with mandatory responses to comments, reduce emergency legislative procedures, introduce delayed implementation of new tax laws, and eliminate the practice of changing tax rates via by-laws.

The ultimate goal is to create a predictable and stable tax framework that encourages investment and sustainable economic growth.