If adopted the changes would go into force on 1 August.
Prime Minister Ivo Sanader said that such changes in the tax system, together with a previously introduced 10 percent VAT rate on tourism services, would additionally improve living standards of Croatian citizens and make newspapers more affordable to the public.
The government also forwarded to parliament a final consumer protection bill under which lawsuits between merchants and consumers could in the future be settled outside the court.
Also forwarded to parliament from today's government session was a final bill on foster care.