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Ćorić on new measures: We will detect those who raised margins; such profiteering will not be allowed

Ćorić on new measures: We will detect those who raised margins; such profiteering will not be allowed

From Večernji List · () Croatian

Translated from Croatian, summarized and contextualized by DistantNews.

At a glance

News Sources not specified New plan
  • Croatia's Finance Minister Tomislav Ćorić announced a new anti-inflation package aimed at curbing excessive profit margins.
  • The measures target companies that significantly increased their gross margins compared to a three-year average, contributing to inflation.
  • Ćorić also addressed criticisms of the package and discussed adjustments to the flat-rate taxation for certain businesses and public sector wages.

Croatia's Finance Minister Tomislav Ćorić has unveiled a new anti-inflation package designed to take effect next year, emphasizing that it will target companies profiting excessively from current economic conditions. Ćorić stated that the measures focus on a "tax treatment of excessive gross margins of companies," specifically those that have seen significant increases in their margins and profits compared to a three-year average preceding the current year.

"Behavior within which an exogenous shock that has occurred and the general heating of the economy is used for profiteering simply is not and will not be allowed," Ćorić asserted during an HRT broadcast. He aims to identify and curb companies that have exacerbated inflation and inflationary expectations in Croatia by raising their margins.

The minister also addressed public reactions, particularly from landlords, and acknowledged that the package seeks to correct certain "anomalies" that have emerged over the years. He explained that some individuals have shifted from standard employment to flat-rate taxation schemes, leading to a form of disguised employment. The new measures aim to address this while maintaining a more favorable tax treatment for flat-rate businesses compared to standard employment.

Regarding public sector wages, Ćorić anticipates a "constructive approach" from unions during upcoming collective negotiations. While public sector wages are set to rise by just over three percent in 2026, he cautioned against an overly optimistic approach to future increases. He also downplayed concerns about a slightly weaker GDP growth in the first quarter, attributing it to unfavorable weather conditions for construction and noting that growth still exceeds EU averages. Ćorić dismissed opposition criticisms of the package as "peremptory and generally incomplete."

Svjesni smo činjenice da je dio ljudi u jednom trenutku, a uslijed značajno povoljnijeg poreznog tretmana, nesamostalni rad zamijenio paušalom i na taj način imamo pojavu prikrivenog nesamostalnog rada. Na ovaj način to adresiramo

— Tomislav ĆorićAddressing the issue of disguised employment and flat-rate taxation.
DistantNews Editorial

Originally published by Večernji List in Croatian. Translated, summarized, and contextualized by our editorial team with added local perspective. Read our editorial standards.