Croatia, according to VAT rates, is in the European top, and predicted incensement of VAT rate from 10 to 13 percent brings additional turmoil in the economy .
It sends a message about an unstable tax environment , warns Marina Kesner – Škreb in the new “Aktuelni osvrt” Institute of Public Finance .
It was announced that rate should come into force on 1 January in 2014. year , which means that for the three months, higher VAT should be charged on edible oils and fats , white sugar, baby food , water , restaurant and other services , certain newspapers and magazines, concert tickets, and magazines for Culture and Arts .
“Three percent points, apparently are not a big change, but the implications are much greater, the VAT rate will be the highest in the EU, a new tax change brings additional turmoil in the economy and sends the message about an unstable tax environment,” warns Kesner Škreb
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The B92 crew yesterday visited Croatia and investigated what are the economic measures that the Croatian government is preparing to cut the budget deficit and public debt .
Presenting data on the general , inter-rate and a reduced rate of VAT in the 28 EU Member States, Kesner Škreb points out that the general and the proposed inter-rate of VAT in Croatia are more than the EU average . General rate in Croatia is 25 percent, while for the EU members an average is 21.5 percent . In Croatia proposes inter-rate 13 percent , while the EU average is 10.4 percent .
Reduced turn rate of VAT in Croatia is by five percent lower than the EU average of 6.7 percent.
” Although a large number of EU countries during the economic crisis has increased the general rate of VAT, Croatia with the rate of 25 percent, the same as in Sweden and Denmark , is among the European top . Only Hungary exceeds them , with a rate of 27 percent,” noticed Kesner Škreb .
Croatia , according to Kesner Škreb , after an increase of 13 percent of inter-rate would be one of the recorders in the EU because, according to the rates ,it should be in fourth place , just after Hungary ( 18 per cent ) , Finland ( 14 percent ) and Ireland (13.5 percent) .
And the neighboring countries use inter-rate lower than that proposed for Croatia – Austria 12 percent , Italy 10 percent, while Slovenia does not have a inter-rate, but uses a reduced rate of 9.5 percent.
” The problem is not only that we will be in the top by the rate of VAT, but the problem is that the Croatian VAT rate changes too often ,” said Kesner Škreb .
