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Croatia to postpone cut in general VAT rate until 2020 - govt

Author Maja Garaca
Croatia to postpone cut in general VAT rate until 2020 - govt Author: Radomir Ralev

ZAGREB (Croatia), August 3 (SeeNews) - Croatia's government said it would wait until 2020 to cut the general value added tax (VAT) rate from its current level of 25%, one of the highest in the EU.

Instead, the government will slash to 13% the VAT rate on certain items such as fresh meat, fish, fruit, vegetables and diapers, the government said in a statement on Thursday.

The Croatian government had earlier planned to cut the VAT rate to 24% from January 1, 2019.

Croatia currently levies 5% VAT on bread, milk, medicines and books.

Finance minister Zdravko Maric announced last month that the cuts in Croatia's income and corporate tax in 2017 led to a general government budget surplus that year, the first since the country's independence.

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