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With the aim of fiscal consolidation, the Croatian government on Thursday presented a package of 37 reform measures that should reduce the budget deficit by HRK 2 billion and one of these measures includes an increased intermediate Value Added Tax (PDV) rate from 10% to 13% as well as higher excise taxes on tobacco products and fuel, outsourcing facilities in the public and state sectors, doing away with tax reliefs for first home buyers, and reducing special pensions.
Legislative changes required for the implementation of these measures will be enacted along with the proposed 2014 budget in early November.
The government expects that the measures will reduce the budget deficit by HRK 2 billion or around 0.6% of Gross Domestic Product and by HRK 4 billion or 1.2% of GDP in 2015 and a further 1.7% of GDP in 2016. The budget deficit in 2016 is foreseen to fall to 2.4% of GDP, Welfare Minister Milanka Opacic, EU Funds Minister Branko Grcic and Finance Minister Slavko Linic said on Thursday while presenting the reforms. Government
Related News in English
Povezane vesti na srpskom
Συναφείς Ειδήσεις στα Ελληνικά