Opposition MPs on Wednesday welcomed the government's measures to alleviate the impact of rising inflation on citizens, VAT reduction and its aid scheme, but noted that measures for the business sector were insufficient and belated and warned that margins could grow and prices stay the same.

MP from the centre-left Social Democratic Party (SDP) and former finance minister, Boris Lalovac, welcomed the scheme, noting that it was comprehensive and generous.

“These measures will definitely alleviate the impact of inflation, the market will stabilise and there are instruments to alleviate emergency situations,” he said, adding that it would be good if the government introduced price monitoring to establish if VAT reduction had actually helped reduce prices of products for citizens.

Stephen Nikola Bartulica of the right-wing DP party said the government should have reacted sooner, that its measures were welcome, but few and belated.

Marijan Pavlicek of the right-wing Croatian Sovereignists said that the government’s measures were partially good but belated and that more attention should be given to farmers given that prices of their production materials “have gone up by 400%”.

Romana Nikolic of the Social Democrats, too, believes the government’s measures are belated and partially misdirected.

She said that her party group had proposed reducing the VAT rate on electricity and gas and raising the non-taxable income from 3,800 to 5,000 kuna, which would result in a 300 kuna increase in all wages. Reducing VAT on food can result in an increase in trade margins while prices will remain the same, she warned.

Anka Mrak-Taritas (GLAS) said the government’s measures for households were good and fair but that those for the business sector were not sufficient and were belated.

“The government should accept the Opposition’s proposals and reduce the price of labour to help the business sector,” she said.

Zvonimir Troskot of the populist Most party believes the measures are belated but he welcomed the reduction of VAT and the redirecting of social transfers from the Energy Efficiency Fund.

He pointed to a lack of a long-term energy policy.

Sandra Bencic of the Mozemo! platform said that the measures exceeded expectations.

“I believe the social package is good, that it covers a broad group of people, which is good. It is good that all households will receive payments for heating, gas, and electricity costs,” she said, adding however that subsidies for the business sector should have been higher.

She also welcomed the reduction of VAT but warned that, without control mechanisms for extra profit from margins, citizens would possibly not feel the lowering of prices.