August 25 (SeeNews) - Croatia's government said it has decided to cut value added tax levied on the delivery and instalment of solar panels for individuals and public buildings to zero from 25%.
In this way the government is encouraging the use of electricity from renewable sources, finance minister Marko Primorac told a weekly cabinet meeting on Wednesday, as seen in a video file published on the government's website.
The government has sent its proposal to the parliament for approval.
At its meeting the government also decided to cut further, to 5%, the VAT levied on the supply of energy from heating stations, as well as on wood chips, wood pellets and firewood until the end of March next year, after it slashed the tax from 25% to 13% as of April 1.
Currently, the general VAT rate in Croatia is 25%, with lower rates of 5% and 13% applied for certain products and services.
Earlier, the government cut the VAT rate on the sales of heating energy permanently to 13% from 25% and slashed VAT on natural gas supply from 25% to 5% from April 1, 2022 to March 31, 2023 in a bid to tackle soaring energy prices.