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Croatia’s new govt to cut taxes, PM says

Croatia’s new government plans to reduce income and profit taxes, as well as VAT, and to cut the number of ministries in order to address the ongoing economic slowdown caused by the coronavirus crisis, reelected Prime Minister Andrej Plenković has said, local portal SeeNews reports.

File photo: Croatiaʼs Prime Minister Andrej Plenković arrives for an informal meeting of the EU and Western Balkans states at the European Council headquarters in Brussels, Belgium on February 16, 2020. Photo by Alexandros Michailidis /

“The first steps we are going to take will be cutting the income tax from 36% to 30% and from 24% to 20%, the profit tax from 12% to 10%, the VAT on all food from 25% to 13%, as we have announced,” Plenković was quoted as saying on public broadcaster HRT.

The ruling center-right Croatian Democratic Union (HDZ) led by Plenković won the July 5 general election, grabbing 66 of 151 seats in parliament and leaving behind its main opponent the Restart Coalition, led by the Social Democratic Party (SDP), with 41 seats.

Plenković has said the new cabinet is expected to be formed by the end of July, SeeNews adds.