January 7, 2021 - Transparent donations getting to the people who need them most are essential in emergency response. TCN follows the Voice of Entrepreneurs Glas Poduzetnika (UGP) fund to report on the realities on the ground.

The donations are pouring in from all over the world to help the victims of the earthquakes in Petrinja, Glina and Sisak, donations which have been gratefully received and which are making a difference. 

As I wrote previously, many people have contacted us at TCN asking for advice on the best place to send money. We published a list a few days ago, but I was really happy to see one more fund set up 7 days ago, from Udruga Glas Poduzetnika, or Voice of Entrepreneurs, which is a growing force for reform and change in Croatia. Run by people who want to see an end to corruption and needless red tape, I was sure that their efforts to help their fellow citizens in crisis would be transparent, dynamic, focused and effective, with all money donated going to the people who needed it most. And so it proved, which is why I am now directing anyone looking for a place to donate to UGP, as I explained a couple of days ago.

UGP co-founder Drazen Orescanin was kind enough to give me an in-depth interview yesterday on the focus, plans and activities of the UGP fund, and it was great to hear that 100% of the money donated will go to help those who need it most.

In order to provide more transparent donation information, we agreed to publish a daily report of the fund's activities, finances and purchases. This was due to be published yesterday, but the crazy events of January 6, 2021 meant a slight delay. As resources and time allow, this will be a daily feature, and you can track progress here.

Report from January 8

Daily activities

Today, we have managed to deliver 6 housing containers to the families in need. Many of them had children who still slept in houses that were dangerous and in cars. 

The four-member family Đelalija will unfortunately lose their house, which is too badly damaged. But, because of the help of our members and donors, the family will no longer have to sleep in the car.

The Augustinović family has two children, and the third is on the way. They are grateful that they will no longer have to sleep in an unsafe house.

The Bunčić family house also received a red sticker, which means that they can’t live there anymore. Donation of a housing container means a lot to them and guarantees at least a little security in these difficult times.

The Lovrinčić family of four says: "Thanks to the wonderful people who sent us this housing container so that we don't have to be in a house that has collapsed inside and is not safe to live in, thank you from the bottom of our hearts!" 

Families Božić and Jurković have also received housing containers later this day. For them, this means calmer nights in safety. 

Plans for today

This weekend we will coordinate with our volunteers in the field, so next week we can deliver more housing containers. We expect the delivery of at least two more containers for families in Sisak-Moslavina county on Monday.  

Information in English for donations, both for donations from Croatia and abroad. 

For the latest news on UGP, follow the dedicated TCN section. 

For the latest information on the earthquake emergency, follow the dedicated TCN section. 

January 7, 2021 - Transparent donations getting to the people who need them most are essential in emergency response. TCN follows the Voice of Entrepreneurs Glas Poduzetnika (UGP) fund to report on the realities on the ground.

The donations are pouring in from all over the world to help the victims of the earthquakes in Petrinja, Glina and Sisak, donations which have been gratefully received and which are making a difference. 

As I wrote previously, many people have contacted us at TCN asking for advice on the best place to send money. We published a list a few days ago, but I was really happy to see one more fund set up 6 days ago, from Udruga Glas Poduzetnika, or Voice of Entrepreneurs, which is a growing force for reform and change in Croatia. Run by people who want to see an end to corruption and needless red tape, I was sure that their efforts to help their fellow citizens in crisis would be transparent, dynamic, focused and effective, with all money donated going to the people who needed it most. And so it proved, which is why I am now directing anyone looking for a place to donate to UGP, as I explained a couple of days ago.

UGP co-founder Drazen Orescanin was kind enough to give me an in-depth interview yesterday on the focus, plans and activities of the UGP fund, and it was great to hear that 100% of the money donated will go to help those who need it most.

In order to provide more transparent donation information, we agreed to publish a daily report of the fund's activities, finances and purchases. This was due to be published yesterday, but the crazy events of January 6, 2021 meant a slight delay. As resources and time allow, this will be a daily feature, and you can track progress here.

Report from January 6

Daily activities

Yesterday we bought 10 housing containers which will be donated to people from Petrinja, Glina and Sisak. Our volunteers and members of UGP are constantly taking care of people who are in need and whose houses were destroyed in the earthquake. We are trying our best to help as many people as possible, that is why we cooperate with local authorities and other organizations. It is very important to us that we help people who are truly in need. We would like to use this opportunity to thank all of the volunteers and everyone from our Association that is trying to help. Also, we would like to point out that yesterday we have contacted Minister Medved and suggested cooperation so we can all together renew the Sisak-Moslavina County. 

Plans for today

Today first housing containers are arriving to the families in need. We are very happy that we managed to send them in such a short time. Also, we are planning to deliver two more containers tomorrow and in the next week we are expecting to deliver at least 5 more housing containers. The companies that we are working with are giving their best to produce them as quickly as possible. 

The arrival of a container in Petrinja. 

Bank statement

Container purchases

Information in English for donations, both for donations from Croatia and abroad. 

For the latest news on UGP, follow the dedicated TCN section. 

For the latest information on the earthquake emergency, follow the dedicated TCN section. 

January 6, 2021 - Finding a transparent, dynamic and reliable fund for donations after a natural disaster in Croatia is not necessarily that simple. TCN catches up with Glas Poduzetnika's (UGP - Voice of Entrepreneurs) co-founder Drazen Orescanin to find out why UGP started their own appeal, its focus, transparency and plans.  

After working as a humanitarian aid worker for a few years, urgent appeals for donations after natural disasters is something I am quite familiar with.  I have closely followed many such appeals both out in the field in places such as Rwanda and Tajikistan, as well as as a private citizen in both Croatia and the UK.  

Perhaps I am getting older, but it seems to me that there are a couple of differences in the response here in Croatia. The first is that I have never seen a country so strong and united in adversity as Croatia, and the sheer overwhelming desire to help is truly heartwarming. So many selfless acts from ordinary people are a privilege to observe and report on. 

The second thing I have noticed is that, despite that incredible generosity and willingness to give, there is an inherent suspicion of many official appeals and bank accounts for donations, particularly on the part of some of the most generous and big-hearted donors of them all - the Croatian diaspora. 

There is a good reason for this, after many send everything they had to help the Homeland through the war in the 1990s, and to help rebuild a new modern Croatia. I don't think I am divulging any State secrets when I say that not all the money went to its intended targets. 

Trust and transparency are essential when it comes to fundraising. The other issue which caused plenty of controversy during my days in the aid world was the percentage of donations which were given over to 'administration.' 

A lot of people have contacted TCN since the earthquake asking how they can donate. We published a list a few days ago, but I was really happy to see one more fund set up 5 days ago, from Udruga Glas Poduzetnika, or Voice of Entrepreneurs, which is a growing force for reform and change in Croatia. Run by people who want to see an end to corruption and needless red tape, I was sure that their efforts to help their fellow citizens in crisis would be transparent, dynamic, focused and effective, with all money donated going to the people who needed it most. And so it proved, which is why I am now directing anyone looking for a place to donate to UGP, as I explained a couple of days ago.

In order to convey that message of transparency, TCN has decided to follow the UGP efforts, and we plan to report daily on income and activities (as time and TCN resources permit). We begin our journey by talking one of the dynamic faces of UGP, co-founder Drazen Orescanin, who kindly found some time in his busy schedule for this email interview.

1. Natural disasters such as the Petrinja earthquake always bring lots of appeals for donations. Why did UGP decide to set up their own fund when there are official channels and established charities?

Many of our members wanted to make their donations through UGP because they consider us to be a very trustworthy organization. We knew that we can raise a lot of donations and we can distribute containers, equipment and building material very quickly, which is essential in such catastrophic situations. Also, we are doing that 100% transparently. In this way our donors can see people who got their donations, and that is something that can make people feel realy good about what they and we are doing.

2. What guarantees can you give potential donors that their donations will reach the people who most need it?

We have good cooperation with the mayors of Petrinja, Glina and other cities and villages in the region and we also have a strong team of UGP members and volunteers who are validating each recipient of the donation before we make the donation.

3. When I was an aid worker, a sizable percentage was usually allocated for 'administration'. What percentage of each donation makes it to the people who need it with your fund?

Every single kuna and Euro that is donated will be spent on containers, equipment and building material. Our employees who are supporting this charity are paid from the main UGP account and the rest of the team are volunteers.

4. Tell us about your working relationship and coordination with the emergency services and authorities on the ground.

We have very good cooperation with mayors and deputies in many local authorities. We are also in daily contact with several other organizations – restaurants and chefs who are preparing meals, as well as structural engineers who are assesing damage in buildings. We hope that communication with other public services will be easier now that the crisis headquarters with deputy PM Medved is established.

5. What, in your opinion, are the most urgent aid requirements? Is it food, shelter, building materials, for example? What will be your main focus?

The most urgent need now are containers and mobile homes where people who can't leave their homes and have livestock will stay for the next months. There is a need for more than a thousand containers. After that, we will focus on building material, so we can help the rebuilding of houses. Fortunatelly, there are enough clothes, food and blankets now

6. You set up the fund just a few days ago. How much have you raised so far?

We have raised 2,3 million kuna in five days.

7. You have already started to spend those funds to help the needy. Can you give us some more details?

We have ordered already 18 containers and we have spent 770.000 kuna. Out of that 154.000 kuna is VAT that is going straight to the state budget. We have asked the Ministry of Finance to approve a decision that such donations shall be VAT-free. In that case we would be able to bo 4 more containers for the same funds.

8. UGP has become a strong voice for reform and change in Croatia, and you have been very critical at times of the government's handling of both the pandemic and the earthquake response. What are your main grievances regarding the earthquake response?

Croatia does not have defined protocols to handle such situations, and many things in the first week after the earthquake were not coordinated between different public services on the ground. Fortunatelly, many citizens, enterpreneurs and foreign governments have stepped in and sent a lot of help, also provided many public kichens and served hot meals for citizens and volunteers. Also, we are not very happy with the way how the government is communicating to the public about the situation and lack of appreciation for the citizens who helped a lot after the earthquake.

9. And what are the authorities doing well in your opinion?

I hope that now with new HQ all services will be more coordinated, and that they will smoothly take over all the infrastructure and activities done by volunteers.

10. One shocking aspect which has come to light after the earthquake is how many buildings which were built or rebuilt after the Homeland War suffered extensive damage. Can you tell us a bit more about why you think this is?

Croatia is well-known for the corrupt nature of our institutions. One of our former Prime Ministers is in prison with several sentences for corruption, and every few months a few highly positioned politicians are busted for corrupt offenses. The rebuilding of damaged areas after the war was of the biggest affairs where billions of kunas were stolen. The modus operandi was to use the minimum material to rebuild the house and take away everything else, so the houses were built without respecting earthquake safety rules. It is a well-known fact, it was in the media before, but no one has been prosecuted so far. I hope this will be the trigger for a revision of all buildings rebuilt after war.

11. Some people will donate money, others perhaps supplies, or their time and expertise. For those willing to donate materials or their time, what things are most needed, and what is your advice for those who want to volunteer? 

For this first period, we have a good team on the ground. In the following months when we will deliver building materials, people will need craftsmen who will be able to build and repair their houses. We have many members with the necessary skills, but everyone who would like to be involved should join our Facebook group and follow the announcements and offer his or her help when there will be need for their skills.

12. And finally, of course, how can people donate to the UGP fund?

Information in English for donations you can find at our web site, both for donations from Coratia and abroad.

For the latest news from the Petrinja earthquake and aftermath, follow the dedicated TCN section. 

January 4, 2021 - Am impressive effort from Croatia's entrepreneurs for Petrinja, Glina and Sisak, as well as a transparent option for those looking to the earthquake relief efforts.

One of the challenges for people looking to send donations in the aftermath of the Petrinja earthquake has been where to send the money. As with all disasters, a number of fundraising campaigns spring up, and it is not always obvious how legitimate they are. 

Put that into the Croatian context, which is perhaps not best-known for its transparency with regard to public funds, and it is understandable why many in the diaspora and elsewhere are reluctant to send funds through official channels. 

There are other options of course, and one which I am happy to endorse was set up just three days ago and has already raised more than 1.4 million kuna (almost 200,000 euro) - set up by the Glas Poduzetnika (Voice of Entrepreneurs) Association. (11am update - this number has now passed 1.6 million kuna)

Glas Poduzetnika is an association of private entrepreneurs, whose voice is becoming louder by the day in its demand for change and a better Croatia. With more than 70,000 followers, it was one of the few positives in Croatia to emerge from the ashes of 2020. 

Glad Poduzetnika (UGP) co-founder Drazen Orescanin explained more about the fund and its aims:

Many members of UGP wanted to make a donation but they don't have faith that money donated to Croatian Government will be used to help people, because we have a long history of various corrupt events.

The funds raised will be used to buy housing containers, heaters, other equipment, and construction materials. We will raise funds until the end of February to help as many citizens as possible renovate their housing facilities. UGP will transparently publish the flow of donations and invoices that will confirm what the donated funds were invested in. Our priority is to provide the citizens of Petrinja, Glina, Sisak, and surrounding places a roof over their heads in the upcoming winter months.

Our priority is to provide the citizens of Petrinja, Glina, Sisak, and surrounding places a roof over their heads in the upcoming winter months.

UGP invites all those who want and can help the victims with a donation to pay the above account donations.

Thank you to all of you who will help Sisak-Moslavina County citizens; we know that no one is in an enviable situation due to this corona crisis!

Your UGP!

Glas Poduzetnika chairman Hrvoje Bujas posted a status update on Facebook this morning:

Good morning!

Thank you all from ♥ ️ for your payments, in the first 3 days we collected over 1.4 million kuna.

Our goal is to raise as much money as possible, and show how much the hearts of entrepreneurs, craftsmen, employees in the private sector ... members of UGP, as well as everyone in this Group. Every kuna counts. Every kuna will be purposefully and transparently invested, you know that you can trust us.

Share, like ... let our Voice be heard far away!

And if you want to donate, here is the payment information:

Entrepreneurs for Sisak-Moslavina County in Croatia

You can help too!

Dear members of the Association and all who want to help,

We have opened a fund for donations to help citizens from Sisak-Moslavina County! You can deposit funds to IBAN:

HR6523600001502851531

Payment description: Humanitarian action

Model: HR99

Bank: ZAGREBAČKA BANKA d.d.

Note for call number: If the model HR99 doesn't pass, enter the model 00 and then a number.

Or you can scan a QR code on mobile banking:

or

For payments from abroad:

VOICE OF ENTREPRENEURS ASSOCIATION

PAVLETIĆEVA 1

10000 ZAGREB

SWIFT: ZABAHR2X

IBAN: HR6523600001502851531

Payment description: HUMANITARIAN ACTION

Bank: ZAGREBAČKA BANKA D.D.

You can join the UGP group here.

For the latest updates from Petrinja, follow the TCN section.

As Marko Repecki/Telegram writes on the 14th of December, 2020, if almost 7,000 vulnerable companies fail (according to the data from August, they're now even more endangered than they were before with this new lockdown), the Croatian state budget will lack a massive 3 billion kuna, which is equivalent to funds for as many as 130,000 pensions, according to the Voice of Entrepreneurs Association (Glas Poduzetnika). Economist and head of the Economic Council of the Voice of Entrepreneurs, Vuk Vukovic, analysed the effect of the collapse of vulnerable companies on the state budget.

The aforementioned association has been warning that micro, small and medium-sized enterprises will unfortunately be the ones to bear the brunt of the ongoing coronavirus crisis and that many of them will have to close their doors due to the lack of concrete assistance.

About 500,000 workers were affected by the measures

Vuk Vukovic's analysis is based on data on aid for job preservation from the Croatian Employment Service (CES), which is presented by month, and on data on the financial statements of all Croatian companies from back in pre-pandemic 2019.

Table 1 and Graph 1 indicate several interesting trends. First, during the lockdown (from March to the end of May), between 415 and 500 thousand workers were affected by the then introduced measures. This regards employees who, at least at that time, depended on state aid of 4,000 kuna because they weren't able to work (their companies were closed or they were in isolation).

In 2019, they generated 419 billion kuna in revenue

A total of 55 thousand companies were, at one time, dependent on this type of assistance. It's worth pointing out that these companies generated a total of 419 billion kuna in revenue in 2019, which is more than the Croatian GDP from that year (which amounted to about 400 billion kuna) and represents 52 percent of the total revenue earned by all Croatian companies in 2019. Half of the Croatian economy was directly affected by the crisis caused by the COVID-19 pandemic.

"This doesn't mean that 419 billion kuna in revenue was endangered because not all revenues fell by more than 50 percent, some actually fell by much less, but in those months, many companies asked for support,'' explained Vuk Vukovic.

After the lockdown, there was a drop in the number of people provided with the aforementioned grants

Interestingly, after the lockdown, there was a sharp drop in the number of people using those government subsidies, from 415 thousand down to a significantly lower 72 thousand in June, and from 54 thousand companies to 6800 who were still seeking such support for their 49 thousand workers during the month of August. These companies, which were obviously still sailing through troubled waters three months after the lockdown and as such needed to seek 4,000 kuna in aid for their workers, account for a total of almost 37 billion kuna in revenue (9 percent of GDP).

In other words, the collapse of these companies, which haven't yet recovered from the shock of this continuing crisis, directly threatens 49 thousand jobs and 9 perent of GDP (this data refers to the period before the new, partial lockdown came into force).

The next category is the data on paid taxes and contributions of micro, small and medium enterprises registered in Croatia. Table and Graph 2 show the distribution of income tax payments and taxes and contributions from salaries and employee salaries for all companies in Croatia for the year 2019.

They paid 29.2 billion kuna in taxes and contributions last year

Back in 2019, micro, small and medium-sized (SME) companies in Croatia paid a total of 5.5 billion kuna through profit tax and 23.7 billion kuna through taxes on salaries and contributions. This total amount, excluding VAT, of as much as 29.2 billion kuna, was enough to cover the total costs of the healthcare system in 2019, which stood at around 12.8 billion kuna, the police, court and prison costs (8.8 billion kuna), military expenditures (4.7 billion kuna) and even expenditures on sports, religion and culture (an additional 2.6 billion kuna).

Or, a different calculation of 29.2 billion kuna collected only from micro, small and medium enterprises would show that it was enough to finance the total cost of pensions of 27.4 billion kuna, or to almost cover the total cost of expenditures for public sector employees, which in 2019 amounted to 29.6 billion kuna.

A ''hole'' of 3 billion kuna has been formed through a drop in the payment of taxes and contributions alone

Micro, small and medium-sized Croatian enterprises pay the state budget an amount sufficient to finance all pensions or all salaries in the public sector or the entire healthcare system, the police, courts and prisons, the army, sports, religion and culture. If we focus solely on those Croatian companies that received aid, whose revenues at the height of the pandemic and lockdown accounted for 52.5 percent of that of the Croatian economy, such companies paid about 24 billion kuna from income tax and taxes and contributions to salaries (excluding VAT) for 2019 alone.

After the lockdown came to an end, far fewer companies were left at risk, but their potential collapse will create a hole of as much as 3 billion kuna just through the drop in taxes and contributions to the state budget. This effect of the collapse of about 7,000 of the most vulnerable companies alone means less money for the healthcare system, pensions or for public sector wages. In particular, the collapse of the 7,000 most vulnerable companies would jeopardise as many as 136,000 pensions or about 25,000 salaries in the public sector.

Vuk Vukovic: The government needs to find a way to save these companies

''It should be borne in mind that this is an impact assessment based solely on the latest data available from the end of August. At the end of the year, after the new lockdown, even more Croatian companies are likely to find themselves in troubled waters, which means that many more jobs are potentially yet to be put at risk, and as such, tax revenues and budget contributions will also be in the same boat.

I'd like to note that these calculations don't take into account the lack of VAT revenue from companies that will potentially fail and whose staff would find themselves out of work. Thus, all of the above estimates very likely underestimate the strength of the final effects of all this. I think that the situation is very serious and that the government should find ways to prevent the collapse of so many companies as soon as possible,'' concluded Vuk Vukovic, the founder of the Economic Council of the Glas Poduzetnika Association.

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ZAGREB, Dec 7, 2020 - The Voice of Entrepreneurs association laid a wreath outside the Ministry of Economy and Sustainable Development on Monday, calling for "urgent and brave" reforms and the replacement of Minister Tomislav Coric.

Cars and buses briefly blocked the traffic in the street in front of the Ministry as protesters lit lanterns and laid wreaths and flowers at the entrance to "pay their last respects" to small and medium-sized businesses hit by the partial lockdown imposed as part of government efforts to curb the spread of the coronavirus pandemic.

They once again appealed to the prime minister to fire "the worst economy minister Croatia has ever had." They drew attention to the "intolerable absence of concrete aid and compensation" for all businesses experiencing a sharp decline in their activity. 

The association's head Hrvoje Bujas said that Croatia had lacked key reforms over the last 30 years. "It is high time we organised ourselves to ensure the implementation of key reforms. It is also high time that the reforms become the key topic for every economy minister and for every minister in the Croatian government, including the prime minister," he said.

Bujas said that Croatian small business owners were leaving the country in search of better business conditions abroad. He stressed the need for a better functioning judiciary, optimisation and digitalisation of public and local government, lowering VAT and scrapping various parafiscal charges.

The association's executive director Drazen Orescanin said that they had good dialogue with some of the ministries and state institutions, but not with the Economy Ministry. He complained that Minister Coric was not communicating with them at all.

Orescanin said that the present government should represent all people and not just voters of the Croatian Democratic Union (HDZ) party. If the party cannot find an appropriate person to serve as Economy Minister, there are many competent experts for this post who are not members of any party, he added.

At the end of the protest, two police officers approached Bujas and Orescanin and took down their details as well as the registration numbers of the vehicles that blocked the entrance to the Ministry building.

"We'll see what the police will do. We won't be surprised if we get fined," Orescanin told Hina, adding that this was not a protest rally but a gathering because protest rallies were not allowed in the present time of the pandemic. He noted that about 20 members of the Voice of Entrepreneurs and partner associations were present, which is in line with the epidemiological measures, while the rest were representatives of the media. They all wore face masks and did not violate any measures, he stressed.

December 3, 2020 - A letter to Prime Minister Andrej Plenkovic from Glas Poduzetnika (Voice of Entrepreneurs), seeking the immediate dismissal of Minister Coric. 

Dear Prime Minister and Deputy Prime Minister,

Glas poduzetnika Association considers it inadmissible that Mr. Ćorić is still the Minister of Economy. Namely, the Minister has already shown several times that he does not care that the Croatian economy is failing, that many companies will close their doors and that tens of thousands of workers will lose their jobs. We believe that it is unfitting for the Minister of the Government of the Republic of Croatia to avoid taking responsibility. Also, we have expected of Mr. Ćorić to offer specific solutions and initiate the necessary systematic reforms that would enable the survival of small and medium-sized enterprises.

Many entrepreneurs in recent weeks have been shocked by Minister Ćorić's statements about the situation in our economy and the seriousness of the situation. We are surprised by the lack of tangible assistance and compensation for companies that are facing a large drop in revenue and are not formally closed. We must also point out that the Ministry of Economy ignores all our inquiries, requests and suggestions. Minister Ćorić allows the destruction of micro, small and medium-sized companies and acts as if it does not concern him. In a hopeless situation in which many entrepreneurs found themselves, the minister showed frivolity and nonchalant behavior, and the last straw was the statement "that not all businesses will fail without more generous help from the state, as the entrepreneurs themselves claim."

We believe that Minister Ćorić's behavior in this situation is inappropriate, and we see his unwillingness of dialogue, lack of understanding of the economic issues and lack of experience in the private sector as the main problems. We have a very unusual situation in which the Minister of Economy has not worked a single day in the private sector. In addition, we have to point out that Mr. Ćorić is related to numerous current scandals in which Croatian taxpayers' money has been stolen.

UGP believes that Croatia can offer a much better and more competent person to lead the Ministry of Economy. In a sea of ​​bad predecessors, entrepreneurs cannot think of a worse minister than the one we have today.

We hereby plead with the Prime Minister and Deputy Prime Minister to urgently relieve Minister Ćorić of his duties and appoint a Minister of Economy who will be competent for the said position. Also, we insist on behalf of all entrepreneurs in Croatia that the next minister should be someone who has experience in the private sector. We believe that only such a person will be able to understand the specific problems of entrepreneurs and that they will be open to dialogue and cooperation.

Sincerely,

Hrvoje Bujas

President of the Glas poduzetnika Association

For more on the Glas Poduzetnika movement, follow the dedicated TCN section. 

ZAGREB, November 30, 2020 - The government has not found a solution for all businesses that have been strongly affected by the coronacrisis, the Voice of Entrepreneurs (UGP) association said on Monday after a meeting with government officials, adding that compensatory measures need to include all affected activities.

Government representatives met with employers and representatives of the hospitality sector today to present compensatory measures designed to help offset the consequences of the latest lockdown imposed due to the deteriorated epidemiological situation in the country.

UGP underlined that it had much higher expectations from the meeting.

"We welcome some measures that were presented by ministers like the new COVID loans by HAMAG-BICRO. One of the recommendations is to compensate fixed costs but only for those activities that have been shut. We believe that all activities with a large fall in turnover need to be compensated regardless of whether they are formally shut," UPG said in a press release.

Citing the event industry, temporary providers of transport services, travel agencies and other activities that depend on activities that have been shut down, UPG wondered if they would be left to cave in.

One of UPG's proposals is a temporary reduction of VAT for the affected activities. The association believes that VAT should urgently be reduced to 13% in order to boost consumption and that a move like that would facilitate business for all affected activities, including hospitality and other service industries. Almost all EU countries have done just that, the association notes.

UPG president Hrvoje Bujas thinks that short-term measures are insufficient and that there is no plan for long-term reforms.

"We are unhappy. We presented clear and substantiated proposals that are in Croatia's interest, please listen to us," Bujas added.

October 6, 2020 - Continuing its efforts to protect businesses, the Glas Poduzetnika (Voice of Entrepreneurs) Association turns its attention to parafiscal levies. 

Signatures so far: 10.400+

Start date: 30.9.2020.

Full text of the petition:

Voice of entrepreneurs Association (Glas poduzetnika) is organizing the signing of the petition:

STOP unnecessary charges!

With this petition we demand the abolition of the mandatory membership fee in the Croatian Chamber of Commerce (Hrvatska gospodarska komora), the Croatian Chamber of Crafts (Hrvatska obrtnička komora) and the Tourist Boards, as well as the abolition or drastic reduction of all other parafiscal charges that burden entrepreneurs, craftsmen and all other citizens!

Parafiscal levies mean non-tax levies, ie various fees imposed by the state. Although they are called "non-taxable", they have the same economic effects on entrepreneurs, craftsmen and citizens as taxes. In 2019, entrepreneurs, craftsmen and citizens paid over HRK 9 billion for over 500 parafiscal levies.

Among the parafiscal levies are mandatory membership fees that entrepreneurs are forced to pay to the Croatian Chamber of Commerce, the Croatian Chamber of Crafts and the Tourist Board.

We demand that membership in the Croatian Chamber of Commerce and the Croatian Chamber of Crafts becomes voluntarily.

We demand that the payment of membership fees to the Tourist Boards becomes abolished, and that their work starts to be financed from sojourn taxes.

We demand a drastic reduction in all other parafiscal levies.

Glas Poduzetnika's postulate is clear - #LessTaxes!

Sign the petition and take the first step towards Croatia 2.0!

The petition is supported by the following professional associations:

CISEx - Croatian Association of Independent Software Exporters

Lipa - Association of Taxpayers

NUU - National Association of Caterers

Women in Adria - association of women in entrepreneurship

Croatian Family Farm Association "Life"

 You can sign the petition here.

Follow the latest from Glas Poduzetnika on Facebook.

ZAGREB, July 28, 2020 - The Voice of Entrepreneurs association (UGP) on Tuesday called for lowering of the standard 25% Value Added Tax rate to 13% on services provided by hairdressers and fitness studios, explaining that this would be benefit the state budget in the long run and would also create more jobs.

The association presented the findings of an analysis showing that a lower VAT on those services would have multiple positive effects on employment and doing business.

The UGP said that hairdressing is one of the few occupations that have survived changes introduced by the Internet.

The association says that hair salons are mostly small businesses that have managed to remain on the market, but there are fewer and fewer of them and therefore it is necessary to address the issues bothering them in a serious manner.

The lower VAT, the less grey economy

The UGP said that a lower VAT for hairdressers and fitness studios would help reduce the grey economy.

By reducing the VAT rate, the authorities would encourage doing business legally, and consequently, there would be more revenues in the state budget, it added.