Croatian taxpayer works half of every year for the state

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Croatian taxpayers earning an average salary end up working half a year for the state and another half for themselves and their family, the Lipa taxpayers ' association said on Friday in a press release marking Tax Freedom Day on July 1.

The calculation was made for a hypothetical Croatian who earns an average income, is married with one child, lives in Zagreb, owns a car, does not smoke, and regularly pays the public broadcaster license fee.

“Tax Freedom Day is the day in the year when you stop working for the state and its institutions – not only those that benefit everyone, such as schools or hospitals – but also the numerous and obscure agencies and institutes, their subsidies, incentives, financial support, and fees. On July 1, you start working for yourself and your family!” the association said.

They added that although the 2017 tax reform was a step in the right direction, Croatia is still awaiting for real tax relief that would be felt by Croatians earning average salaries.

The only way to move the date earlier in the year is to reduce budget spending, and to engage in a comprehensive reform of the public sector, including the health care and pension systems, the judiciary, the state administration and the local government, the association said.

According to Lipa association’s calculation, this year’s Tax Freedom Day is on July 1, which remained unchanged from the previous three years.

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