From its foundation until today, Croatia has passed through numerous tax reforms, ie almost every few years changes are made in the ways and rates of taxation. Since January 1, 2017, there has been a tax reform that is considered to be one of the largest tax reforms so far. This tax reform has involved significant changes both in the system and in the operative part. The biggest changes in the operating part are related to changes in several tax areas. In the profit tax system the most significant changes are reflected in the reduction of the profit tax rate from the previous 20% to 18%, the introduction of the tax rate of 12% for taxpayers with annual income of up to 3 million HRK and the abolition of the tax benefit for reinvested earnings. In income tax system the most significant changes are the increase in personal deduction from the previous 2.600 HRK to 3.800 HRK and the change in tax rates, ie the tax is paid at rates of 24% and 36%. In value added tax system, the most significant changes relate to changes in taxation conditions in the catering industry where VAT has increased from 13% to 25%, while at some products and services VAT has decreased from 25% to 13%. Tax reform, which entered into force on 1 January 2017, did not show any significant changes in the system of special taxes and excises. According to that, the paper focuses on the changes in these areas and their impact on the movement of production and consumption. Through the conducted research, it is shown how the changes that have been introduced in the tax areas by the tax reform in 2017 have affected the movement of production and consumption.