In Croatia, the association Voice of Entrepreneurs (UGP) has expressed serious concerns regarding the recent increase in energy prices, particularly affecting micro, small, and medium-sized enterprises. These businesses are often the first to feel the strain from rising costs and inflationary pressures. In light of this situation, UGP is advocating for timely and effective measures that are realistic, actionable, and aimed at alleviating operating costs to support small entrepreneurs during these challenging economic times.

To address the challenges posed by inflation and increased operational costs, UGP has suggested specific policy changes. Firstly, they recommend raising the threshold for Value Added Tax (VAT) registration to €100,000, arguing that the existing limit no longer reflects the economic realities faced by small businesses. This adjustment would significantly ease administrative burdens on small entrepreneurs, allowing them to focus more on their operations rather than compliance with tax regulations.

Additionally, UGP emphasizes the need for a consistent application of the principle of opportunity in inspection oversight. They argue that penalties imposed on entrepreneurs are often disproportionate, especially for minor or unintentional infractions. Therefore, UGP asserts that warnings should be the standard approach, while penalties should be exceptions to ensure a fairer regulatory environment, particularly for small and medium enterprises that are already navigating difficult economic waters.