Croatia Proposes Extending 5% VAT on Energy Products Until March 2027 to Maintain Price Stability

The Croatian Ministry of Finance proposes extending the reduced 5% VAT rate on energy products until March 31, 2027.The measure aims to maintain price stability and ease inflationary pressure on households and businesses.The reduced VAT applies to natural gas, heating from thermal power plants, firewood, pellets, briquettes, and wood chips.Without the extension, the VAT rate would rise to 13%, potentially increasing energy prices and affecting living standards.The extension is expected to cost the state budget 47 million euros in lost revenue, but helps keep energy prices stable.

Source: bta.bg

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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