Burden of taxation growing
New light on the nature of taxation cuts
Croatia is one of four EU member countries that lead by the growth of taxation burden measured through the ratio of taxes and social contributions to GDP, according to Eurostat. Tax revenue in Croatia accounts for 38.6% of GDP, which is little less than the EU average of 40.3%, but more than in the peer transitional countries. Last year, the taxation burden in Croatia increased by 0.8 percentage points, while in the past four years the share of tax revenue increased by 1.3 percentage points and relative to 2012 by a high 2.7 percentage points. These data shed a completely new light on the nature of taxation cuts initiated in Croatia in the past couple of years.