BJELOVAR, October 7, 2020 — The City of Bjelovar will exempt cafe, bar and restaurant owners from paying taxes on terraces. They will also co-finance heaters for them, announced Mayor Dario Hrebak.
The City of Bjelovar will abolish the consumption tax for food and beverage establishments! This was announced yesterday by Mayor Dario Hrebak at a press conference. This is one of several measures the city has adopted to help caterers survive the crisis caused by COVID-19. Following the Headquarters’ decision that wearing masks will be mandatory in cafes and restaurants, caterers have found themselves in an even more difficult position. Colder days are coming, so these measures should help them get through the winter more easily.
Hrebak: Need to Tighten Belts and Help Businesses
In addition to abolishing the consumption tax, caterers will be exempt from paying tax for the use of terraces according to Novac/Jutarnji list. This will be in effect until June 30, 2021. Furthermore, the City of Bjelovar will co-finance heaters for terraces.
“The catering industry is really struggling. Therefore, the city of Bjelovar is providing support to caterers so they can survive the winter. At the beginning of the crisis, we helped the Bjelovar economy with 8 million HRK (1,056,962 EUR). After 20 years, we also abolished the surtax, which makes us the largest Croatian city without a surtax,” continued Hrebak. Finally, he noted that they are now abolishing the last city tax, the consumption tax. That tax generates 800,000 HRK (105,696 EUR) for the city every year.
“This shows that we also need to tighten our belts and help our businesses. By doing so, we are showing other cities that this is possible. Most importantly, we all need to help the economy, and not leave it stranded like in 2011,” emphasized Hrebak.
Bjelovar to Co-Finance Heaters for Terraces to 396 EUR Per Caterer
The 3 percent consumption tax will not be assessed as soon as the administration process is finished, within thirty days. In terms of co-financing heaters, the city will contribute 50 percent of the total cost. That amount could reach up to 3000 HRK (396 EUR) without VAT per caterer. In addition, the city also plans to halve the rental price for enclosures and stands during events. However, these measures will also cost the city treasury more than 1,000,000 HRK (132,096 EUR).
Marin Medak, president of the National Association of Caterers, also supported the measures at the conference .
“It is important that we create a model by which we can hope to save jobs. I believe that the government will also recognize that,” says Medak.
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