11-10-2011 16:26 Croatia
Croatian hoteliers want lower VAT
Croatian hotel owners have asked for cuts in Value Added Tax (VAT) that are highest in tourism and hospitality sectors.
Croatian tourism sector has a 23 per cent VAT rate. Hotel owners say that lowering the tax rate to eight per cent would free up money for investments in the industry.
Kristijan Sustar from hotel owners association says that Croatia’s competitors such as Greece, Portugal, Cypress, Malta and Spain all have significantly lower rates.
Franck Trouet from the French association of hotel owners says similar cuts have worked out for his country’s tourism.
"In two years that the tourism and hospitality has the VAT rate of 5.5 per cent instead of the previous 19.6 per cent, the prices in hotels and restaurants have fallen 2.5 per cent, 50,000 jobs have been saved, and 52,000 new jobs opened. French state budget lost 2.5 billion Euros from the cuts in VAT but overall it received 4.7 billion Euros more," Trouet said.
The Croatian government must reach a decision on VAT until the end of June 2012, daily 24 Sata writes.
Source: Croatian Times