Croatian Rural Tourism Association calls for fulfillment of promises on reduction of parafiscal levies and introduction of CRO cards
The Croatian Rural Tourism Association called on the Government of the Republic of Croatia, ie the Ministers of Finance and Tourism to fulfill two promises on compensatory measures on the end of 2016 when increasing VAT in the hospitality sector: reduction of parafiscal levies i introduction of the CRO card.We expect compensatory measures like the frosty sun, and more than a year has passed since their announcement, points out Jasmina Rakić Horvat, president of the Association ” We welcome the positive effects of the so-called comprehensive tax reforms on budget stability and budget deficit reduction, but macroeconomic indicators may not be the only criterion for assessing its performance. The effects of the reform on rural tourism are extremely negative. Some of our colleagues have decided to reduce agricultural production and lay off workers in order to get out of the VAT system. Those who continue to operate positively are forced to give up investment and development. Unfortunately, there are also examples of closing facilities that cannot operate positively with the existing fiscal and parafiscal levies. Some are even leaving Croatia, which is an additional blow to the demographics in rural areas. ” pointed out Rakić Horvat, after the end of the 2nd regular Assembly of the Association held on January 18.01.2018, XNUMX. in Čazma.Janko Kezele: Continental and rural tourism do not have time to waitThe Croatian Rural Tourism Association points out that the ministers promised compensatory measures in the form of the introduction of the CRO card and the reduction of over 200 parafiscal levies in these sectors. Apart from the publication of the Register of Non-Tax Benefits in early 2017, there are no indications when the promised compensatory measures should take effect. Unfortunately, in terms of the business environment, Croatia is currently ranked 114th out of 136 places in the 2017 World Economic Forum’s Travel and Tourism Competitiveness Index, and in terms of price competitiveness in 100. place which is devastating for the development of tourism, especially continental tourism.”Despite last week’s Prime Minister’s announcement of a VAT cut, our sector doesn’t have time to wait a couple of years. Compensatory measures should be implemented as soon as possible to halt the negative effects of tax reform, especially in rural areas that do not depend on the tourist season and foreign guests. If the VAT reduction occurs once, we hope that it will be done in accordance with the Tourism Development Strategy of the Republic of Croatia until 2020. It is a document passed by the Croatian Parliament and according to which VAT in tourism and catering should be reduced below 13%, as is the case in our competing countries. As a compensatory measure, the introduction of a CRO card was announced, which would significantly encourage domestic tourist spending. So far, just one unfulfilled promise. Continental and rural tourism have no time to wait! With this pace of implementing compensatory measures, we will no longer have anyone to implement them for. ”Pointed out Janko Kezele, vice president of the Association.The Croatian Rural Tourism Association is the only national professional association that brings together providers of rural tourism services from all over Croatia. Solving legislative problems and promoting rural tourism are the main goals of the Association founded in 2016.