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Assistant Professor Ivan Herak: There is no doubt that maintaining a high VAT rate will result in a decline in investment in the tourism sector
The announcement by the current Minister of Finance that VAT on food and beverage services will be increased from the current 13% to 25% as of January 1, 2017, has rightly sparked an avalanche of negative reactions from leading figures in the hotel and tourism sector, as well as hundreds of small business owners. In order to fully understand the scale of the problem, it is necessary to go back to January 1, 1998, when the VAT Act came into effect...
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