Marić: Budgetary revenues in June looks much better than in May

Finance Minister Zdravko Marić said on Wednesday that in order to move up in competitiveness rankings, Croatia should make certain reforms and be more successful in terms of tax, non-tax and administrative relief. 

He was commenting on the World Competitiveness Rankings by the Institute for Management Development from Lausanne in which Croatia ranks 60th among 63 economies analysed.

Speaking to reporters, Maric underlined the need for reforms "which will mean an improvement of the horizontal framework for conditions of doing business."

He said the situation with budgetary revenues in June "looks much prettier" than in May, when tax revenues dropped 50% on the year. "However, we should wait to see how events unfold towards the end of the month."

Fiscalisation data for June show a cumulative drop of 15-17% on the year, Maric said, adding that the decrease in retail was single digit, but in tourism and hospitality it was "more than 50%, somewhere about 60%."

He said the value of fiscalised receipts on some days in June exceeded HRK 500 million, on some days even HRK 600 million. Last year tourism was at the level of about HRK 100 million and this year it is HRK 40-50 million, he added.

"The situation is improving. However, let's not create some kind of euphoria or let someone think that we are embellishing. The situation in tourism is not even close to what it was last year. But evidently the relaxation of measures is having its effects on the economic activity itself and certain repercussions on the budget's revenues side."

A reporter pointed to the "economic paradox" of tourism workers refusing to lower prices even though demand was falling. Maric said Croatia was a market economy and that business owners made business decisions, including on prices, and ran their companies.

"As for logic, one should put themselves in the shoes of each one of them and see whether that's a good or bad decision."

Maric said Croatia had tourism potential, unrelated to the COVID-19 situation, and that in order to achieve a financial effect, it was necessary to raise quality.

We have a very diversified tourism system, from hotels and campsites to private accommodation, which is also categorised, he said, but added that in some segments there could be even greater diversification.

Text: Hina

News