Media freedoms

IFJ deems new VAT law unjust and discriminatory

21.06.2013 u 12:48

Bionic
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The International Federation of Journalists (IFJ) has expressed concern over Croatia's new legislation on Value Added Tax which envisages a lower VAT rate for daily newspapers with more than 25,000 words per edition, branding such law as "fundamental interference in the freedom of media".

"We support our member union in Croatia, the Trade Union of Croatian Journalists, in their assertion that this draft is fundamental interference in the freedom of media as it breaches a number of Croatian legislations, including the country's constitution and the Law on Media, and is contrary to European laws on neutrality, discrimination and proportionality as well as specific European documents and directives, including the EU Charter on Fundamental Rights," the IFJ said in the letter it forwarded to Croatia's top officials, including President Ivo Josipovic and Prime Minister Zoran Milanovic.

"It is the view of many interested parties, in particular the Croatian Association of Newspapers Publishers, that provisions in the proposed law which enable unequal application of the VAT tax rate to the same products -- (daily) newspapers -- will have an enormous impact on the print media market. This unequal treatment does not exist in almost all member states where a single reduced rate is applied to all types of newspapers equally, dailies as well as as periodicals," reads the letter.

"This indeed would inevitably put journalists and media in a position where their writings and contents would be under the 'scrutiny' by the Croatian authorities as they are evaluated in order to decide on the appropriate tax rate. The emphasis on creating a border line of 25,000 or more printed character, and as such encouraging quantity over quality, will also enable authorities to impinge on media contents," the federation warns.

This federation, which gathers 180 trade unions, urges the cabinet of Zoran Milanovic to "enter into a dialogue with" the Trade Union of Croatian Journalists and other interest parties to amend the legislation which reporters' associations find discriminatory.