The Croatian Chamber of Crafts (HOK) on Thursday welcomed the adoption of legislation to settle tax debts by physical entities which facilitates writing off interests and re-scheduling the principal debt which would allow businesses to extend the period of repayment.
HOK believes this is a much more efficient way to resolve tax debts owing to the state budget instead of pre-bankruptcy settlements which are much more complicated and costlier.
The HUS union federation also welcomed the adoption of a new law as this represented a worthy attempt to relieve the impact of the crisis which was worst felt by its citizens.
It was in this aim that the president made his recent recommendations which should be prepared and implemented as soon as possible to help the growing number of citizens burdened by the debt crisis, union reps said.
The government forwarded the bill to parliamentary procedure which proposes writing off interest, allows repayment in installments of the principal tax debt owed by citizens and businesses who were compelled to shut down.
According to the Tax Administration, around 616,400 citizens and businesses owe the government around HRK 12.7 billion in taxes of which HRK 7.04 billion in principal and HRK 5.7 billion in interest.
The government on Thursday formulated a bill on the collection of physical persons' tax debts which would enable citizens to pay their tax debts by writing off interest and rolling over the principal at a 4.5 per cent interest over a period of a minimum 36 and a maximum 60 months.
