A comprehensive package of measures to help citizens and companies after the rise in energy prices worth several billion HRK was presented and will apply from April 1, 2022. A package of measures worth 4.8 billion HRK, to mitigate the growth of energy prices, which will limit the growth of electricity prices to 9.6 percent and gas to a maximum of 20 percent and among the measures are lowering the VAT rate on gas and some agricultural products, subsidies on the price of gas for households, changes in the system of benefits for the socially disadvantaged, one-time benefits for retirees and the like. The package that was presented was done systematically, it is timely, well prepared and comprehensive.

A package of measures for businesses and farmers

• For all customers - mitigating the growth of electricity prices through HEP
• For companies - aid for gas costs to entrepreneurs
• For farmers and fishermen - low-value aid scheme for the purchase of fertilizers and aid to the fisheries and aquaculture sector

By limiting the increase in electricity fees (HEP), households will be relieved of about HRK 460 million. Despite the strong global rise in prices, this will significantly mitigate the growth of electricity prices in Croatia.

Support for gas costs to entrepreneurs refers to micro, small and medium-sized enterprises with an average annual consumption of up to 10 GWh. The amount of support is 15 lipa/kWh, or about 22% of the projected price of 89 EUR/MWh. The aid is realized by a voucher for the amount of small value aid. The entrepreneur applies for support through the HAMAG-BICRO application, which generates a Decision on the award of aid and a voucher for the total amount of aid estimated on the basis of individual reference annual consumption. Each month, the subsidized amount is deducted from the voucher until it is spent or until invoice for March 2023. The projected total amount of this measure is HRK 600 million. The financing of the measure will be provided by the sale of greenhouse gas emission units at auction in Croatia.

Low-value support program for farmers for the purchase of fertilizers (field crops, vegetables and permanent crops). The measure covers 88,000 agricultural holdings, and the estimated amount of the measure is HRK 200 million. Aid amounts to 450 HRK/ha of agricultural land for the first 10 ha and 250 HRK/ha for the next 10 ha to a total of the first 20 ha.

Reduction of VAT in everyday use

As for the changes related to VAT on gas and heat, it is reduced from 25% to 13%, which means that the VAT on electricity, gas and heat is equalized. In the period from 1 April 2022 to 31 March 2023, the VAT rate on gas supplies will be reduced from 25% to 5%. Also, VAT on briquettes, wood chips and firewood is reduced from 25% to 13%.

Changes in VAT related to food and daily necessities are as follows:

• 5% instead of 13% on fresh meat and fish, eggs, fruits, vegetables, edible oils and fats, baby food, agricultural costs, seedlings, fertilizers and pesticides
• 5% instead of 25% on butter and margarine
• 13% instead of 25% on sanitary pads and tampons
• 5% instead of 25% and 13% on tickets for sports, cultural and other events.

This comprehensive package of measures effectively and significantly mitigates rising gas and electricity prices, as well as food and other necessities. It comprehensively affects all strata of society and is socially solidary and focused primarily on the most vulnerable groups in society. It contributes to the preservation of jobs and purchasing power and contributes to the continuation of a strong economic recovery, the competitiveness of enterprises, agriculture and fisheries.