Croatian Finance Minister Slavko Linic announced  that effective as from 1 March 2012, VAT in Croatia will rise from 23 per cent to 25 per cent, writes 24 sata.

To mitigate the impact of increasing VAT, the government will reduce tax on edible oils, fats, baby foods and processed grain based foods for infants and young children by 10 per cent. From 1 January 2013 tax on tourism related items will also be reduced by 10 per cent, specifically, on food in restaurants, soft drinks, juices, wine and beer.

Linic said the package of tax laws was aimed at unburdening the economy and preserve the standard of living for the citizens affected by the crisis. The complete package of laws will be announced on Monday