Austerity Versus Investment - Uncertainty Remains Over Reintroduction Of Mobile Tax in Croatia

On January 20 2012 Croatia's parliament voted to reinstate the 6% 'special tax' on revenue generated by mobile operators' services. The 6% tax on mobile services had previously been in place from late 2009 but was abolished from January 1 2012, after parliament approved the government's proposal to abolish the tax on October 28 2011. Despite parliament approving the reinstatement of the tax, according to local media reports, on January 23 2011 the government and operators met to determine an investment path for the industry, with the outcome being the possibility that the proposed tax will be annulled if operators commit to investment in infrastructure. BMI considers the potential impact of the tax on the Croatian mobile industry.

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