Mobile tax abolished as of 9 July

11 Jul 2012

With effect from 9 July 2012 the 6% tax on mobile network service revenues in Croatia has been abolished, following a parliamentary decision. In January this year the special tax, applicable to all mobile network operators’ voice and messaging service revenues, was removed and reinstated again within one month, when a decision made by the previous government was overturned by the country’s new administration, which had initially intended to keep the tax in place until Croatia’s accession to the European Union in mid-2013. The removal of the levy this week was welcomed by Telekom Austria, parent of Croatian cellco VIPnet, which gave a statement saying: ‘We appreciate the abolishment of this tax as a positive signal from the Croatian government… industries… which are committed to heavy investments need a positive stimulus for future investments.’ Croatia has been in recession since 2009, and has introduced various other fiscal measures including a personal income tax (‘crisis tax’) and a hike in the basic VAT rate from 23% to 25%.