Bus Operators Seek Lower VAT On Their Services

The bus operators warned that they had been affected by rising energy prices as well as by the negative impact of the coronavirus pandemic on group travel.

“The government scheme has reduced VAT on gas, food, agricultural products and sporting and cultural events, but not on passenger transport. The VAT rate on passenger transport in Croatia is among the highest in Europe, and in addition to paying some of the highest fuel prices, due to the highest VAT rate, Croatian citizens do not have access to a much cheaper transport alternative,” they said.

Their president Hrvoje Meštrović said that many European countries had a lower VAT rate on passenger transport also before the pandemic and energy price hikes.

He noted that countries comparable to Croatia, like Slovenia, Hungary and Austria, as well as a vast majority of other EU countries, all had lower VAT rates of below 10% on public passenger transport because they recognised its importance.

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