ZAGREB, 31 March 2022 - Prime Minister Andrej Plenković opened a cabinet meeting on Thursday by commenting on the government's HRK 4.8 billion (€640m) package of measures aimed at mitigating the impact of increased energy prices on households and businesses, which enters into force on Friday.
The increase in electricity prices was capped at 9.6% and the increase in gas prices for households at a maximum of 20%. The VAT rate on gas deliveries was reduced for a year from 25% to 5%, and VAT was also reduced on food, agricultural costs, cultural and sports activities, and so on, the prime minister said.
"We also took into account those most vulnerable in our society, who are living at risk of poverty. For them social transfers were increased from HRK 200 to 400, which also includes electricity and gas bills. In this way we are taking care of our fellow citizens who need our solidarity at this moment," Plenković said.
He also mentioned a special scheme for farmers and fishermen, and one-off allowances for pensioners.
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