Economy Minister: We'll Act on Excise or VAT if Necessary

By 13 October 2021
Economy Minister: We'll Act on Excise or VAT if Necessary

ZAGREB, 13 October, 2021 - Economy Minister Tomislav Ćorić said on Tuesday the government was aware of the energy price crunch's negative impact on living standards and that, if necessary, it would act on excise tax or VAT.

Asked by the press when the state would intervene in fuel prices by cutting the excise tax, Ćorić said, "Soon".

"We are aware of the consequences which the increase in fuel prices is having on the widest circle of consumers in Croatia, all drivers and their families. That's why we'll estimate the fiscal effects and act on either the excise tax or VAT," he added.

Excise tax and VAT account for HRK 5 of the price of one litre of petrol and diesel, and if the growth continues, the prime minister has instructed "analysing the effects on some cost elements in the price," said Ćorić.

Croatia willing to participate in building second Krško block

He went on to say that next week in Slovenia, at a meeting of a Croatian and Slovenian governmental commission, he would "announce at the ministerial level Croatia's willingness for talks on building a second block of the Krško nuclear power plant."

Ćorić said Croatia's power supplier HEP, the co-owner of Krško, had already said that Croatia was interested in co-funding the construction of the second block and participating in sharing the output "because we need a stable and long-term source of electricity."

That will allow Croatia to meet some of its needs from Krško in the long term and after the first block is phased out in 2043, Ćorić said, adding that he and Hungarian Innovation and Technology Minister Laslo Palkovics yesterday talked about the possibility of Croatia meeting its electricity needs from the Paks nuclear power plant for ten years or more.

He said Croatia would not build nuclear power plants on its territory due to the importance of tourism for its GDP.

Croatia is strategically oriented towards clean energy, from the renewables, but it has to accept the fact that part of its electricity comes from Krško, which it co-owns, and that it will be so until 2043 at least, the minister added.