- Croatia plans to extend the reduced 5% VAT rate on energy products until March 31, 2027, to curb inflation and protect households and businesses from rising prices.
- The reduced VAT applies to natural gas, district heating, firewood, pellets, briquettes, and wood chips.
- Without the extension, the VAT would revert to 13%, likely increasing consumer prices and business costs.
- The extension will cost the state budget about €47 million in lost revenue.
- The proposal aims to balance price stability for consumers with fiscal responsibility and will now go to lawmakers for debate.
Source: thedubrovniktimes.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
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