September 8 (SeeNews) - The Croatian government unveiled on Thursday a 21 billion kuna ($2.8 billion/2.8 billion euro) package of measures to support households and the local economy amid the ongong global energy crisis and rising prices.
The aid package is strong, fair and all-inclusive, prime minister Ander Plenkovic told a weekly cabinet meeting, as seen in a video file published by public broadcaster HRT.
"The package will protect Croatian citizens, the public as well as the government sector and the economy, and will ensure a peaceful, predictable autumn and winter this year, " Plenkovic added.
In order to alleviate the impact of rising energy prices, the government will cap electricity prices for companies, public institutions and households from October 1 to March 31, 2023.
Electricity prices for companies will be capped at 180 euro/MWh and 230 euro/MWh depending on consumption. For public institutions and non-profit organisations, the price would be limited at 62 euro/MWh, while for households it will be capped at 59 euro/mWh and 88 euro/MWh.
Earlier, the government decided to cap natural gas prices for households until April 1, 2023.
For companies, the government will provide 1.9 billion kuna worth of incentives to encourage transition to energy saving technologies and production of electricity from renewable sources, it said. A cap will be also set on the prices of cooking oil, milk, sugar, wheat, pork and chicken meat.
The government will also mulls a new special tax for companies that make excessive profits during the crisis period, Plenkovic said.
Croatia's consumer prices rose by 12.3% on the year in July, after increasing by 12.1% in June.
Last month, Plenkovic said Croatia's economic growth rate this year will be higher than the government's projection of 3%, after the release of official figures pointing to a real 7.7% annual increase of gross domestic product in the second quarter of 2022. The third quarter will be also very good due to the strong tourism season, he said back then.
(1 euro=7.517 Croatian kuna)