May 12 (SeeNews) - Croatia has raised more than 230 million euro ($250 million) from a windfall profit tax that it imposed at the end of last year in an effort to redistribute earnings to be reported for 2022 by companies with significant profits.
"These are not final numbers because for some companies the financial year does not overlap with the calendar year and there is an opportunity for that amount to be slightly higher,” finance minister Marko Primorac told a weekly cabinet session on Thursday as seen in a video recording posted on the government's website.
The finance ministry imposed the new tax on all companies that will report a revenue above 40 million euro for 2022. These companies have to pay an additional tax of 33% on the part of their 2022 profit exceeding by 20% the average profit they had reported for 2018, 2019, 2020 and 2021.
The new tax aims to redistribute the excessive profits of large companies made on the back of inflation to ease the negative consequences of price growth on the most disadvantaged individuals.
Out of the money collected with the windfall profit tax, more than 102 million euro has been distributed under the government's support scheme adopted last month, and a further 130 million euro will be distributed under the government’s next packages of measures to support individuals and companies, Primorac added.
($ = 0.918 euro)