Budget Revenues Higher than Last Year

By , 18 Mar 2017, 13:20 PM Business

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Finance Minister Marić is satisfied with budget revenues and expenditures.

Croatian Finance Minister Zdravko Marić said on Saturday that the tax revenues in the first two months of this year reached 10.4 billion kuna, or 1.3 percent more than in the same period last year. He also discussed the introduction of property taxes and the latest events concerning Agrokor, Croatia’s largest privately-owned company, reports Jutarnji List on March 18, 2017.

According to preliminary data, the total budget revenues in the first two months of this year amounted to 17.6 billion kuna, while tax revenues reached 10.4 billion kuna, which is 1.3 percent more than in the same period in 2016, said Marić. “Revenues from VAT have increased by 1.8 percent. It should be remembered that from 1 January we have lowered VAT rate on electricity and garbage collection, but at the same time we have reintroduced VAT on catering services. However, the real effects will be seen in the coming months”, said Marić. He also said that there was a decrease in revenues from excise taxes on tobacco and tobacco products, which is the result of the reduction in cigarette consumption due to increase in excise duties, as well as anti-smoking campaigns. Marić also pointed out the growth of salary contributions revenue by 3 percent, which is a consequence of employment growth and nominal wage growth.

The expenditure side of the budget is in line with the plans, he said, with expenditures in the first two months in the amount of 19.4 billion kuna, which is 1.1 billion more than in the same period last year. He pointed out that the increase was primarily related to subsidies for agriculture, which were paid as early as February, instead of April as in previous years.

As for 2016, Marić reiterated that the latest preliminary data showed that the general government deficit was at the level of 1 percent of GDP, which is lower than the planned 1.6 percent.

The Minister also pointed out that property taxes would be introduced on 1 January 2018, as a substitution for utility services fee. “In order to successfully implement the introduction of property taxes, the Finance Ministry and the Tax Administration are in intensive collaboration with the Association of Towns and the Association of Municipalities”, said Marić.

He also announced another important project – solving the problem of citizens with frozen bank accounts. According to data, there are 327,000 such citizens, and their total debt is 40.2 billion kuna. “Prior to elections, we promised that we would write off citizens’ debts in the amount of one average salary. We will fulfil that promise”, said Marić.

Marić also commented on the latest events with Agrokor, Croatia’s largest privately-owned company. “We know that they are trying to find a model to increase liquidity in order for Agrokor to regularly pay its obligations. We expect that the owner of the company and the creditors will agree on all important aspects relevant to the company's operations” said Marić.

He again denied reports that Agrokor did not pay 800 million euros in the value added tax. “I can only confirm that Agrokor does not enjoy any privileged status and that legal measures are being taken for the full and timely payment of tax liabilities”, said Marić.

Data from the financial statements of Agrokor for the first nine months of last year, published on the website of the group, show that the total long-term liabilities amounted to almost 20.3 billion kuna, of which almost 19 billion kuna were loans. As for short-term liabilities, which totalled 24.9 billion kuna, the most largest part included debt to suppliers, which reached 16.2 billion kuna.

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Croatia Traffic Info

  • Due to a traffic accident traffic is suspended on the DC14 Mokrice-Bračak state road, detour: DC1 through Zabok. During the day difficulties can be expected in roadwork areas. Until 30 March 8pm-5am traffic is suspended on the part of the A2 Zagreb-Macelj motorway between Krapina and Trakošćan junctions in both directions, detour: DC1 state road. On Rijeka detour road (A7) traffic is suspended: - at Rujevica junction until 31 March at 5pm; - between Diračje and Orehovica junctions in direction Zagreb due to roadworks in Trsat and Škurinje II tunnels 29 and 30 March 10pm-6am; - between Orehovica and Škurinje junctions in direction Rupa due to roadworks in Škurinje I tunnel 9pm-6am until 31 March. In Učka tunnel in Istria one lane is free only tonight (29 March) 10pm-6am. Drivers are invited to keep distance and to adjust the speed to road conditions. With the bad weather the headlights have to be on during the day as well. One lane is free only/traffic is flowing in reduced lanes on the following motorways:-A1 Zagreb-Split-Ploče through Sveti Rok tunnel in both directions; -A2 Zagreb-Macelj between Zaprešić and Zabok junctions 20th-18th km in both directions; -A3 Bregana-Lipovac between Kutina and Novska junctions 106th-108th km, 118th-121st km in both directions; -A6 Rijeka-Zagreb at Svilno viaduct 78th-80th km between Orehovica and Čavle junctions in each direction till 1 June; -A8 in Istria on the section Lupoglav-Učka tunnel. Roadworks on the A4 Zagreb-Goričan motorway (Zagreb detour road): - till 9 June traffic is suspended in the entrance lane of Kraljevečki Novaki from direction Sesvete and Dugo Selo towards Ivanja Reka junction, there is a local detour; in the roadwork area traffic is flowing in reduced lanes; - till 26 April traffic is suspended in the exit lane of Popovec junction from direction Goričan towards Popovec, detour for direction Vrbovec-Popovec: Sveta Helena junction (A4)-Sveta Helena-DC3 Goričica-Belovar-Žerjavinec-Soblinec-Popovec junction, for direction Goričan (A4)-Sveta Helena: Komin junction (A4)-DC3-Sveti Ivan Zelina-Donja Zelina-Žerjavinec-Soblinec-Popovec. Lepenica rest area (at 57th km) on the A6 Rijeka-Zagreb motorway is closed till 15 June, the previous rest area and petrol station is the one Ravna Gora (at 30th km), the next one Cernik-Čavle (17,8 km away from Lepenica). Due to roadworks traffic is suspended: -on the DC1 state road in Lučko and Stupnik (Zagreb); -on the DC8 Adriatic road at Posedarje till 10 April; -on the DC6 state road, section Glina-Dvor border crossing, detour: Glina (DC37)-Petrinja-Hrvatska Kostajnica-Dvor. Traffic is regulated by traffic signals/one road lane is free only:-on the DC1 state road at Tušilović and Mostanje; -on the DC1 Sinj-Klis Grlo state road at Dicmo; -on the DC8 Adriatic road at Poličnik, on the section Kaštel Stari-Kaštel Gomilica, at Podstrana, on the section Zaton Doli-Bistrina, at Srebreno; -on the DC66 Pula-Most Raša state road; -on the DC75 Poreč detour road, section Vrvari-Bijela; -on the DC62 Veliki Prolog-Metković state road at Most Metković. 15 November 2016-15 April 2017 winter equipment is mandatory on the winter sections of the state roads in Croatia (it includes four winter tyres or four summer tyres with chains ready for use).
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  • In the outbound freight traffic there are delays at Pasjak, Bregana (the queue is 1,5 km long) and Bajakovo (the queue is 2 km long). Due to roadworks at Županja and Slavonski Brod border crossings delays can be expected. At Harmica border crossing traffic is allowed for vehicles up to 7,5 tonnes only.
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