Employers in tourism are asking for a postponement of the proposed increase in the sojourn tax

first_imgEmployers in tourism oppose the increase of the sojourn tax without first analyzing the efficiency of the system of tourist boards and the effects of existing financial resources from the sojourn tax and without ensuring the efficiency of collection and proportional burden of all forms of accommodation-tax payers.At the proposal of the Decree on determining the amount of the sojourn tax for 2018, they sent a negative statement to the Ministry of Tourism and HUP i CCC, and during the public consultation the key opinion was given by key associations of entrepreneurs in tourism: Association of Employers in the Croatian Hotel Industry, HUP-Association of Hospitality and Tourism, Association of Hoteliers at the Croatian Chamber of Commerce, Croatian Camping Association, HUP-Association of the Nautical Sector, Association of Boat Accommodation Service Providers-charter at the Croatian Chamber of Commerce.Employers believe that before making a decision on any changes in the arrangement and increase the sojourn tax, it is necessary to analyze the existing financial income and fulfill the purpose and task of tourist boards. Only when the necessary changes are defined and the system of tourist boards is reorganized through the adoption of the long-announced new Law on Tourist Boards and the new Law on Sojourn Tax will it be possible to determine the financial needs of the system and define necessary increases of sojourn tax based on expected effects. In this way, the representatives of the tourism industry communicated with the relevant ministry during the preparation of the new Sojourn Tax Act, after which the Ministry of Tourism put into the procedure only a proposal to increase the sojourn tax through the adoption of the current Decree. Also, as they point out in their statement, the increase of the sojourn tax would be another unjustified burden for Croatian tourism after the increase of VAT and real estate tax. Namely, the sojourn tax, although not paid directly by employers but by tourists, is an integral part of the final cost of accommodation paid by the guest, ie an integral part of the total price of all accommodation services with which Croatia competes in the tourism market. Any additional burden reduces the competitiveness of the Croatian tourism sector, which is in stark contrast to the strategy for the development of Croatian tourism and the EU recommendations to reduce the fiscal and parafiscal burdens of the economy. Revenues from the sojourn tax are already growing significantly due to the growth of arrivals, so that the increase in 2016 amounted to 6%, or HRK 25 million. “Associations of employers in tourism do not oppose changes to the current model of residence tax, but our unique position is that the system should be regulated first, ie the long-announced new Law on Tourist Boards and the new Law on Tourist Tax, which will specify activities in more detail. carried out by each individual level of the system of tourist boards in the Republic of Croatia, as well as the precise, ie more transparent purpose of the funds collected on the basis of the sojourn tax We believe that the Ministry of Tourism will respect the position of key associations in the tourism sector and review the justification for adopting the current proposal to increase the sojourn tax and postpone the proposed changes to the sojourn tax for now. We are available to cooperate in all necessary analyzes in order to make the best decision together in the interest of stable growth and development of Croatian tourism. ” conclude employers in tourism.Related news: THE LAW ON RESIDENCE TAXES IS CHANGED. GET INVOLVED IN THE PUBLIC DEBATE!last_img read more