Global Daily Tax News, Croatian Government Empowered To Flexibly Cut VAT On Fuels, (May 5, 2026)
Croatian lawmakers have agreed the Government should be empowered to lower value-added tax rates on fuels by as much as ten percentage points in the event of a surge in international energy prices.
The legislation provides the Government with flexibility to reduce value-added tax rates should energy prices rise further, as part of the Government's response to the current conflict in the Middle East and future shocks. The scale of the value-added tax reduction would depend on international energy prices.
The Government is also reportedly considering a cut to excise duties on fuels.