Croatian Democratic Union (HDZ) MP Branka Juricev Martincev asked Linic during question time if the government intended to introduce the bill and how the bill would impact those people who had taken years to build a holiday house.

Linic responded that in consideration how to ease tax burdens, the government intended to render the economy to be competitive particularly after the country joins the European Union on July 1 and one of the options was to reduce contributions for health, adding that losses incurred must be supplemented with real estate tax.

He stressed that the bill would introduce the tax which would be equal to utility payments for a first property which could incorporate, several properties if someone lives in them, parents, children, if they are rented or used for some commercial purpose or tourism.

The government does not intend to tax people who have inherited some property or who have a holiday house but will tax those properties that people "keep as some form of wealth". There is no need for citizens to fear this tax, he said.

Linic went on to explain that fiscalisation was going ahead as planned and that since its introduction tax payments by the private sector had increased by 36% and 22% for companies.

"Fiscalisation was a way to prevent tax avoidance but that was not the only objective. The government wants to set equal opportunities for all business subjects and do away with unfair competition", said Linic.