The main aim of the project was to evaluate economic (contribution to gross domestic product and employment) and fiscal effects (influence on budget revenues) of the audio-visual industry in Croatia (companies for production and distribution of films, video-films and television programme) and compare them with the amounts of state aid granted for specific activities. The project was conducted in several stages: (i) structuring the evaluation process, (ii) data collection, (iii) data analysis, (iv) drafting conclusions and recommendations on economic and fiscal effects of the audio-visual industry and comparison with the amount of state aid.
According to European and global standards, the Croatian audio-visual sector is efficient and profitable, but illiquid and indebted. Estimated direct added value of audio-visual industry is HRK 188 million and is relatively small in comparison to the total Croatian GDP (around 0.1%). There is a positive growth trend of that industry. Maximal annual amount of state aid to the audio-visual industry is relatively small in relation to the fiscal benefits that the existence of that industry generates in form of payments of value added tax, corporate income tax and personal income tax to state and local budgets.