The Croatian government has prepared a package of measures worth 4.8 billion kuna ($ 725m) aimed at offsetting the effects of rising energy prices on households, businesses and socially vulnerable groups, the Croatian government said on Wednesday. Prime Minister Andrej Plenkovic, according to Reuters.
“This package has been designed in a systematic way, it is well prepared and complete,” Plenkovic was quoted as saying by Hina news agency. “The package is aimed at households, businesses and farmers,” he said
He said that while electricity prices had risen by more than 30% and gas prices by more than 70% in the European Union by the end of 2021, Croatia had not yet raised household prices.
Plenkovic noted that government measures would limit the increase in electricity prices to 9.6% and gas prices to a maximum of 20%, which would otherwise increase by 23% and 79% respectively.
The government will also permanently reduce VAT on gas and heating energy from 25% to 13% and will temporarily reduce VAT on natural gas to 5% from 1 April, when the measures take effect, by the end March 2023.
VAT on basic foodstuffs such as fresh meat, fish, eggs, fruits and vegetables will be reduced from 13% to 5%, while the tax on certain hygiene items will be reduced to 13% from 25%.
The total value of the VAT cuts will amount to about 2.1 billion Croatian kuna, the government said.
The Glas Poduzetnika business association welcomed the government’s measures, but said in a statement that they should take effect immediately, not on April 1st.
Source: Capital
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