The CEOs of ten leading Croatian companies met with Finance Minister Zdravko Maric at the Croatian Chamber of Commerce (HGK) on Thursday regarding a fourth round of tax reform, saying that without tax reliefs it was not possible to increase wages and competitiveness.

“A decrease in income tax and raising the non-taxable amount on allowances (accommodation, transport and meal allowances for employees) were the primary demands by entrepreneurs,” the HGK said in a press release, adding that they also talked about overtime work and reducing the profit tax.

The HGK has for years been articulating the demands and problems of entrepreneurs, and this was a continuation of the dialogue between the state and entrepreneurs, HGK president Luka Burilovic said.

“The situation is alarming. There is a chronic shortage of labour force, which in turn requires higher wages. Companies can no longer afford to finance such increases with reduced profits as that seriously impacts their investment and development potential and hence the sustainability of their business. That’s why future tax changes need to be aimed at relieving the burden on labour,” Burilovic said.

Minister Maric explained that the fourth round of the tax reform “is still in the analysis stage.” He added that talks were being held with all stakeholders and that “wishes are one thing while reality is another.” The aim is to further relieve the economy both administratively and financially, he underlined.