Slovak Government Halves VAT on Selected Foods
- New Europe Investor
- October 06, 2015
The government headed by Robert Fico has reduced the level of VAT on selected foods in Slovakia as promised in his second social package.
From the beginning of 2016, the level of VAT will be reduced from 20% to 10% on freshwater fish (not frozen), fresh bread, milk and butter.
The prime minister stated following parliaments approval of the reduction, “I am very glad that my government has met the promise that it has given within the second social package and will contribute to a vital reduction of basic food prices.” He said that the reduction will support local producers as well as providing more affording basics for the country’s citizens.
Only 2 of the 137 members of parliament voted against the bill. However, 36 abstained from the vote, with 99 approving it.
The Minister of Finance believes the VAT reduction will hit revenues to the tune of €76.9 million in 2016, rising marginally year on year.
Fico has stated that the list of products covered by the tax reduction may increase in the future.