Maric rejects idea of cutting VAT on fuels due to ‘relevant European directive’

NEWS 22.03.202216:07 0 komentara
Emica Elvedji/PIXSELL

Finance Minister, Zdravko Maric, said on Tuesday that "the relevant European directive did not make it possible for the Value Added Tax rate on fuels to be lowered and that it was necessary to take into account a broader picture, while Croatian Employers Association head Damir Zoric called for a floating rate," state agency Hina said.

Maric admitted that although fuel prices were stabilised to some extent on Tuesday, global fuel markets were very dynamic, and Croatia could have no influence on developments on those markets.

As of Tuesday, a majority of filling stations in Croatia sell Eurosuper 95 petrol for HRK 11.84 per litre, which is a drop of HRK 1.16 compared to the prices over the previous seven days, while the price of Eurodizel diesel fell by HRK 1.89 to about HRK 12.

According to the the cijenegoriva.info website, the prices of premium fuels fell after surpassing HRK 15 per litre last week.

Addressing the press after a conference organised by the Croatian Employers’ Association (HUP), Maric recalled that fuel prices have three basic components: the cost price with margins charged by distributors and sellers, the excise duties system which the government recently amended to alleviate the shock caused by the rise in prices, and, thirdly, the Value Added Tax.

Marić said that the European directive does not envisage the reduction of VAT rates on fuels and stressed that as the finance minister, he did not prefer that option either.

The VAT revenues enable the funding of a set of our expenses and outlays. Anyway, we must take into account a broader picture, the minister said.

HUP: Government benefits a lot from VAT on fuels

HUP Director-General Damir Zoric said after the conference that he was in favour of introducing a floating rate of the Value Added Tax on fuels.

The fuel prices are now mainly affected by a high VAT rate, and we believe the time has come to respond to that, Zoric said, adding that the floating rate could keep the price of fuels down.

He said that the government benefited a lot from the current 25% VAT rate on fuels.

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