The government of Croatia approved a number of short-and long-term measures against grey economy. The short-term measures are to be implemented this and next year and include changes to the law on offences so as to speed up the procedure for cases of tax evasion or other offences related to state revenue collection.
They include measures against the grey labour market and illegal trafficking and for strengthened control over payers of certain taxes and duties.
According to the estimates, there are some 100,000 people working in the grey sector inflicting
losses on the economy of some HRK 7bn (EUR 930mn) annually. Among the planned changes, the
companies which employ workers illegally might be closed for 30 days and if more than 10% of their
employees are illegally hired, then they could be closed for as long as 60 days.
Another possible sanction is blocking of their accounts. PM Ivo Sanader called on the workers themselves to help in the fight against the grey economy as they are most affected. The government also plans to launch stricter
control over producers, distributors and traders in excise goods, i.e. oil derivatives, tobacco, alcohol,
beer and coffee with the purpose of reducing tax evasion.
Among other proposed changes are amendments to the trade law, which should introduce stricter sanctions for illegal traders at the socalled "soft borders" and illegal work of foreigners in the trade sector.