ZAGREB, 17 February 2021 - The Croatian Sovereignists party has put forward a bill of amendments to the Tourist Tax Act and the General Taxation Act to automatically exempt small providers of tourist accommodation from paying 50% of the residence tax and flat-rate tax when special circumstances are declared.
The coronavirus pandemic has caused huge losses to the tourism sector and private providers of accommodation have been particularly affected. This year will probably not be any better and can only be worse, the party's leader Hrvoje Zekanović told a press conference on Wednesday.
Last year a regulation was adopted exempting private renters from a portion of contributions and they were required to pay only half of the residence tax and a quarter of tax payable on a flat-rate basis. We recommend that for any year in which special conditions are declared, private renters should automatically be exempt from paying half the residence and flat taxes, said Zekanović.
"That should be done automatically rather than wait for the tourism minister or prime minister to show their goodwill. It should be provided for in the law whenever special circumstances are declared," he underscored.
Zekanović said it was absurd that a service that was not provided should be taxed. If a private renter is not working, then there is no reason for them to pay tax, he stressed.
Last year there were some renters who did not generate even one-bed night but they were still required to pay 50% of tax. The same refers to residence tax which renters were obliged to pay even though they did not have any turnover, said Zekanović.
It is high time for that problem to be resolved and we urge the government to include our motion on parliament's agenda for consideration under fast-track procedure to facilitate the business of tourist accommodation renters, Zekanović concluded.
