The announced tax changes will help construction and transport, which lack workers, as wages in those sectors should go up, and changes in the VAT system will also help, the Croatian Chamber of Commerce (HGK) said on Friday.

The average gross pay in March was €1,175 in construction and €1,328 in transport.

HGK vice president Mirjana Cagalj said there could be an increase in the turnover of vacation houses due to the increased range for taxes on those houses. But, she added, one cannot predict whether this will increase or decrease construction activity.

The labour shortage in construction is affecting the quality and speed of post-earthquake reconstruction works as well as new contracts, the HGK said, adding that this also affects Croatian companies’ participation in foreign markets.

As for transport, the strategic goal is that at least 75% of freight be transported by rail and inland waterways by 2050, the HGK said, adding that the development of integrated passenger transport and multimodality in freight transport are also envisaged, the HGK said.