Sectoral lobbying has yielded results and positive outcome of the parliamentary debate in the Republic of Italy regarding reduction in the VAT rate on wood pellets of 22 percent to the previous rate of 10 percent is expected. In the opinion of Raoul Cvecic Bole, president of the Croatian Association of Pellets, Briquettes and Wood Biomass Producers and director of company Energy Pellets from Delnice, it is a crucial decision that may encourage further growth of pellet market. We are actively engaged in lobbying for lower VAT, because Croatian producers export the majority of pellets in Italy, which is the largest European market of pellets in households. So far, VAT increase mainly affected the producers and companies were forced to lower prices in order to maintain market position, said Cvecic Bole. The decision will be published in January 2016.