The associations said in a statement on Friday that cities, towns and municipalities will have lost HRK 491 million by the end of this year.
The amendments, which the two associations deem to be against the constitution, will cause losses of an additional HRK 793 million in 2011, and HRK 602 million in 2012 and every year after that.
According to the statement, the government violated the European Charter on Local Self-Government, as it failed to consult units of local self-government before the adoption of the amendments to the said legislation, which changed tax rates.
The statement recalls that the Congress of Local and Regional Authorities of the Council of Europe recommends that a loss in revenues of units of local self-government, caused by consequences of decisions on reducing or revoking taxes, should be compensated by appropriate means.
The associations believe that they have grounds for challenging the said amendments as the European Charter has the status of international agreement, and the Constitutional Court has ruled several times that the laws are contrary to the Constitution, as they have breached international treaties.