European Commission officials who on Tuesday and Wednesday informed Croatian and Turkish negotiators of this chapter during the explanatory stage, told Croatian negotiators about the necessity to revoke the zero rate of the VAT and the introduction of excise duties on electricity, natural gas and coal upon Croatia's entry into the European Union.
The fiscal policy is mostly within the remit of each individual member-state, but the EU directives prescribe only minimum standards, including minimum tax rates.
Under relevant directives, the minimum VAT rate in the EU is 15 percent with a possibility of a 5-percent rate, too.
The Croatian chief negotiator for this chapter, Martina Dalic, said on Wednesday that Croatia could hardly expect any exemptions.
Currently, the zero VAT rate is paid for bread, milk, drugs, books, orthopaedic aids and the public screening of films in cinemas.
"At the moment I would give no forecasts about what may happen with all this. We have been told that zero rates are not in compliance with the (EU) directives," Dalic said.
Some of the changes will also include the altered structure of excise duties paid for tobacco products.
The collection of excise duties on nonalcoholic drinks, cars, coffee and luxury goods in Croatia is in line with the EU standards, she added.