A new list of products with price caps will now include 70 items, Prime Minister Andrej Plenković confirmed on Thursday, following a meeting with representatives from retail chains and manufacturers to discuss revising the list of capped products and the next steps for consumer protection.
Plenković highlighted data showing that Croatia is experiencing above-average economic growth, but he also noted that despite improvements at the macroeconomic level, many citizens are struggling to meet their basic needs.
The government, he explained, has taken measures to safeguard the standard of living by introducing fiscal policies and imposing price limits on certain products. The new list, which now includes 70 products with price restrictions, is the latest step in this effort.
“The state has acted, but others must also step up,” Plenković said, adding that no one would suffer if prices were moderated.
Finance Minister Marko Primorac dismissed claims that the government is benefiting from high inflation rates to boost the state budget.
“I categorically reject this claim,” Primorac stated, explaining that it is the national budget that has been absorbing the cost of various aid packages for both citizens and businesses, including the one for the state-run electricity provider, HEP.
He also rejected the notion that tax policy is to blame for inflation, pointing out that Croatia’s income and corporate taxes are among the lowest in Europe.
While acknowledging that Croatia’s general VAT rate is one of the highest in the EU, Primorac argued that this should not be used as an excuse for inflated prices, especially as the government has already lowered VAT to 5% on a wide range of “farm-to-table” products, from agricultural inputs to final goods.
The government, he reiterated, has no interest in seeing inflation rise, as it undermines policy objectives. Furthermore, he argued that there is no justification for suggesting that Croatia’s tax policies are responsible for food prices being higher than in the rest of the EU.
