Croatian Prime Minister Ivo Sanader stated today that he welcomes the SDP’s proposal to reduce VAT on baby food and basic foodstuffs, but he also expressed doubt about its positive effects.
"This is an old theory and proposal, but I welcome the fact that the SDP is actively thinking about the current situation," Sanader told reporters after the opening of the sixth ministerial forum "Justice and Home Affairs – EU and the Western Balkans." He assessed that the effects of reducing VAT on certain products are "very questionable," which, he added, experts also agree on. Namely, as Prime Minister Sanader emphasized, "there have been cases when the Government reduced taxes, but the price (of the product) did not decrease."
The President of the SDP, Zoran Milanović, spoke today at a press conference about the SDP’s proposal for amendments to the VAT Law, which proposes the introduction of a tax intermediary rate of 10 percent on oils and fats, baby food, clothing, equipment, and diapers, on natural gas, electricity, heating, and liquid fuels. The SDP claims that this measure would reduce retail prices of the mentioned products for households by about 9 percent. (Hina)
