ZAGREB, April 28, 2020 - The Croatian Employers' Association (HUP) on Tuesday called on the government to reduce the VAT rate on protective products to 5 percent.
HUP welcomed the government's decision to gradually ease restrictions and relaunch economic activity, but warned that protective equipment was essential for numerous businesses that do not have any way of obtaining it, saying that the government should donate such equipment.
"We call on the government to donate protective equipment to employers so they can follow the epidemiological measures and resume work after 45 days. Because of the cessation of their operation, businesses did not have any income, and there is the additional problem of the supply chain in Europe which cannot cover demand so that the majority of enterprises cannot acquire protective equipment on their own," HUP said.
HUP added that a large majority of SMEs that have reopened are faced with the problem of obtaining protective equipment, which incurs costs of several thousand kuna a month and puts a great burden on businesses.
HUP proposed that VAT be reduced to 5% for protective equipment, disinfectant, gloves, masks, overalls and so on, used in the fight against COVID-19.
HUP underlined that the reduced VAT rate would facilitate the health system, businesses and citizens in ensuring appropriate conditions for the efficient fight against the spread of the disease and its negative consequences.
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