Croatian Prime Minister Andrej Plenkovic said that the Government has prepared a set of price caps, VAT cuts and other support measures to help households, companies and farmers tackle rising energy prices. In total, the support package is worth around 637 million euros.
PM Plenkovic explained that the increase in electricity prices for households will be limited to 9.6 % compared to current levels and the rise in natural gas prices will be capped at 20 %, adding that electricity prices for households in Croatia have not changed since January 2019. He said that state-owned power utility HEP will also bear a part of the burden of rising energy prices on consumers.
VAT on the sales of heating energy will be cut permanently from 25 % to 13 %, thus equaling the VAT rate on electricity. VAT on natural gas will be reduced from current 25 % to 5 % for the period between 1 April 2022 and 31 March 2023, after which it will rose to 13 % as well.
The support measures will take effect as of 1 April.
