Croatia to extend lower VAT on gas, heating to April 2025
Date: February 19th 2024
Author: Dalibor Dobrić
Category: En.vision
Topic:
Natural gas
, Energy policy
, Economy
, Ecology
, Heating
, Energy Efficiency
Croatia plans to extend the 5% reduced value added tax (VAT) rate on the supply of natural gas and heating until April 2025, the finance ministry said late on Friday.
According to the ministry, the amendments to the VAT law will be open to public debate until 25 March. Meanwhile, the measure is estimated to cost the state budget EUR 46m.At the same time, in its 8th Environment Action programme the EU has been calling on member states to stop subsidising fossil fuels.
The lowered VAT rate had been introduced in April 2022 as a relief measure to mitigate the impact of the energy crisis, and although it was meant to last for only a year, it was already prolonged once in 2023.
The government first trimmed the VAT rate to 13%, but further temporarily slashed it to 5% amid rising energy costs. The general VAT rate in Croatia is 25%.
The lower VAT rate would stay in force for the delivery of natural gas and heating from thermal plants, including related fees, and for purchases of firewood, pellets, briquettes and wood chips.
To share content on social media, you must agree to cookies (bottom left)
