Rijeka Plans to Scrap 1.5% Drink Tax in Cafes and Restaurants from 2027

Rijeka city authorities have announced plans to abolish the 1.5 per cent consumption tax on drinks in cafes and restaurants from the start of 2027. The proposal, which is currently open for public consultation until 26 November, would leave the city budget around €500,000 lighter each year but would reduce costs and red tape for hospitality businesses.

The tax currently applies to all alcoholic and non-alcoholic drinks served in hospitality venues, with the exception of coffee and tea. If the city council approves the plan, caterers would save an average of €1,500 per year, depending on turnover. For example, on a juice priced at €4, the current tax adds about five cents.

Vice mayor Saša Milaković told local media that scrapping the tax would not only ease the financial burden on caterers but also simplify administration. Businesses would no longer need to file special monthly tax returns or keep separate records for the levy.

Rijeka is not alone in changing its approach. Zagreb and Osijek already do not charge the consumption tax, while coastal cities such as Pula, Zadar, Split and Dubrovnik apply a 3 per cent rate. Nearby Opatija, like Rijeka, uses 1.5 per cent. In contrast, Slavonski Brod plans to reintroduce the tax at the maximum 3 per cent from January.

Whether customers will see lower drink prices remains uncertain. Caterer Andrej Kušeta said he believed most owners would invest the savings wisely, possibly in better service or higher wages, with some chance of small price adjustments. Some residents hope to benefit directly, with one local suggesting the saving should be split equally between businesses and customers.

The public consultation opened on 28 October and runs until 26 November. After it closes, the proposal will go to the Rijeka City Council. If accepted, the tax would cease to be collected from 1 January 2027, leaving property tax as the only city-level levy.