Croatian coffee industry calling for change to a tax most consumers never notice

ZAGREB, 26 September 2026 – A tax applied to coffee in Croatia has come back into focus after the Croatian Employers’ Association called for its abolition.

The request was made by the HUP Coordination of Coffee Producers, Processors and Distributors, whose newly elected leadership identified removal of the levy as a priority.

Under the current system, roasted coffee is subject to a special tax of €0.80 per kilogram.

Coffee extracts, essences and concentrates are taxed at €2.65 per kilogram.

The Croatian Employers’ Association argues that removing the tax would reduce both the financial and administrative burden on companies operating in the sector.

In addition to the tax itself, businesses have obligations related to its calculation, records and regular reporting.

HUP says that removing the levy would create more favourable conditions for investment and development in the coffee industry.

Coffee is one of the most widely consumed products in Croatia and has a particularly visible role in the country’s café culture.

The tax is applied at the business level rather than being presented to consumers as a separate charge every time they order a coffee, meaning many customers may be unaware that the levy exists.

The employers’ association argues that the issue should be considered alongside broader efforts to reduce administrative and tax burdens on businesses.

The call does not itself change the tax.

Any abolition or alteration would require a decision by the competent authorities and changes to the relevant legislation.

The issue is nevertheless likely to attract attention from both the coffee industry and hospitality businesses, where coffee represents a significant everyday product.

Croatia has a large café and hospitality sector, while the domestic coffee market includes producers, processors, distributors, retailers and cafés.

HUP’s proposal therefore concerns more than the price of raw coffee. It is also part of a wider discussion about the costs and administrative requirements facing Croatian businesses.

For consumers, the immediate situation remains unchanged: the special coffee tax continues to apply.

But the industry’s latest request puts one of Croatia’s lesser-known consumption-related taxes back on the business agenda.