Labour and Pension System Minister Josip Aladrovic said on Thursday that a new round of lowering Value Added Tax was not planned for 2021, however, coronavirus bailout measures, which expire by the end of this year, could be extended.

“When it comes to Value Added Tax, the fifth round of the tax reform will define the tax policy for the next year,” he added while coming to Government House for a cabinet meeting.

He explained that as far as he knew, the reduction of VAT rates was not on the agenda for 2021.

Earlier in the day, representatives of an initiative seeking a lower VAT rate on hairdressing services staged a rally in St Mark’s Square, demanding that the VAT rate on hairdressing services be reduced from 25 to 13 percent, and they submitted their analyses to the government.

Aladrovic admitted that a lower VAT rate would make it easier for hairdressers and hospitality services to do business, and said that the requests to this effect would be considered.

Concerning the measures aimed at alleviating the situation of businesses hit by the corona crisis, Aladrovic recalled that those measures were expected to be in place by the end of this year, however, they could be revised and amended.

He announced a meeting with trade unions and employerson this topic for Friday.