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Union federation asks for cutting VAT rate on food

Autor: half
ZAGREB, Aug 14 (Hina) - The Independent Croatian Trade Unions (NHS) on Tuesday asked the government to reduce the value added tax rate on food, saying food prices were likely to go up because of the long drought.

The expected increase in food prices, which account for 30-40 per cent of the household costs, will deal a drastic blow to household budgets, the NHS said, recalling that the average monthly salary covers 78 per cent of the minimal consumer basket.

The union federation said that an increasing number of citizens could not pay their bills, resulting in salary and property seizures.

The NHS said the government was responsible for the blow to household budgets because it raised VAT and the prices of electricity and gas.

The NHS recalled that in early May it and the Chamber of Agriculture requested an urgent cut to the VAT rate on food, saying it was not a matter of cost-cutting but of survival.

(Hina) ha

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