Draft amendments to tax laws sent to e-Consultation bring significant changes compared to the Ministry of Finance's initial proposal, with the Croatian Crafts Chamber also proposing the introduction of vouchers for occasional work.
The Croatian Crafts Chamber (HOK) has expressed satisfaction with the new draft amendments to the Law on Contributions and the Law on Personal Income Tax, which were sent to the e-Consultation process on Monday, August 10, 2026. The key change compared to the Ministry of Finance's initial proposal is that artisans with annual earnings up to €40,000, or those in the first five tax brackets, will see no changes.
Đurđica Mostarčić, head of HOK's Accounting and Bookkeeping Section, emphasized that the final draft differs significantly from the initial one. The original proposal had planned to abolish the first tax bracket for lump-sum taxation and significantly increase taxes and contributions in higher brackets, especially the fifth and sixth. The first bracket has since been reinstated, bringing relief to a large number of artisans.
HOK has also prepared a calculator for its members, allowing them to calculate expected obligations in advance and choose the most cost-effective taxation system. According to Mostarčić, preliminary analyses show a clear trend.
"As a rule, lump-sum craft businesses are still the main winners," Mostarčić told HRT.
The Chamber particularly insisted on business predictability. They stressed that sudden increases in obligations could seriously disrupt artisans' business calculations and ultimately lead to price increases for end consumers. They also believe that entrepreneurial growth should not be penalized by sudden jumps in tax obligations when moving from one bracket to another.
To avoid drastic financial shocks, HOK has put forward a concrete counter-proposal. They advocate that the maximum increase in taxation should not exceed 33 percent, which in absolute terms means around €300 per year. This is several times less than the Ministry of Finance's initial proposal, which planned increases in obligations ranging from €2,000 to €3,000 annually.
All amendments are scheduled to take effect on January 1, 2027.
In addition to tax changes, HOK has also proposed introducing a voucher system for occasional and temporary work during negotiations. This measure is primarily intended for the hospitality and construction sectors, where the greatest labor shortages have been identified. The goal is to make it easier for people who want to work extra to be engaged, and to simplify the payment of applicable taxes and contributions for employers.
As part of broader negotiations, the Chamber is also advocating for measures to protect domestic food production and reduce dependence on imports.
