Croatia may lower VAT, but not in 2018, minister says
ZAGREB, Jan 18 (Reuters) - Croatia plans to reduce value-added tax (VAT), but not this year, Finance Minister Zdravko Maric said on Thursday.
Croatia's VAT is 25 percent, one of the highest in the European Union. Analysts and businesses say high taxes are one reason Croatia sees less investment than its EU peers in central and southeastern Europe.
"This government has already begun reducing the tax burden, which proved to be a good move," Maric said. "We have defined a tax policy for 2018 and there will be no changes, but we will use this year for a thorough analysis ahead of further moves."
He did not say how much VAT would be cut. He did say the VAT reduction would come before the introduction of a property tax.
Croatia planned to introduce that tax this year but scrapped the plan last September after widespread public opposition .
Income and corporate taxes were cut in 2017 but tax collection improved, allowing Croatia to post its first general government budget surplus ever, Maric said earlier this month .
The VAT is the biggest contributor to Croatia's overall tax revenues.
(Reporting by Igor Ilic, editing by Larry King)
