The strongest opposition party, the HDZ, on Friday objected to a proposal of a new way of accounting and paying VAT, saying that most small businesses whose activity was not trade would significantly reduce their activity in favour of import and trade, if not shutting it down altogether.
This fiscal policy "measure" additionally burdens the part of the economy which the coalition government should not "neglect," the party's enterprise and labour committee said in a statement.
The legislator's only concern seems to be to fill the state coffers in the short term, while disregarding the fact that this will very soon negatively affect the already difficult economic situation, the HDZ said, adding that small and medium enterprises should drive the development of Croatia's economy.
The party said the proposal that small businesses should pay VAT upon issuing an invoice and not when collecting the payment should be preceded by amendments to the income tax system.
