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Croatian government unveils gift card system to boost domestic tourist spending
Croatia's government on Wednesday introduced the so-called 'Cro Card,' a gift card scheme designed to spur domestic tourist spending by allowing companies to pay their employees up to 2,500 kuna (€336) in credit which can be spent on services in the country's hospitality industry such as hotels and restaurants.
The 2,500 kuna allowance is part of the maximum 7,500 kuna (€1,000) tax-free employment benefits which companies can pay out to their employees every year.
Finance Minister, Zdravko Maric, said that in 2018, some 1.25 billion kuna (€168 million) in tax-free benefits and bonuses had been paid out by Croatian companies, to a total of 490,000 employees. In 2019, the total increased to 1.76 billion kuna (€237 million), Maric said, in addition to 500 million kuna (€67 million) given to Croatian workers in the form of tax-free allowances for food and accommodation.
Cutting of taxes to these extra benefits and bonuses is seen as a key part of the government's tax reform.
"These are strong incentives of the government's tax policy, which will mainly benefit privately-owned businesses," Maric said.
(€1 = 7.43 kuna)
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