Smer proposes reduced VAT rate of 5 percent

THE WINNER of Slovakia's parliamentary elections, the left-wing Smer, proposes a reduced value-added tax (VAT) rate of 5 percent on selected foods as well as medicinal drugs and medical aids.

According to Smer leader Robert Fico, no parties with which his party is negotiating to form the new government have had any problem with this proposal.

Smer gained nearly 30 percent of the vote on June 17 and will likely lead the new coalition government,

Currently Slovakia has a single VAT rate, which is the same as the income tax rate for corporate entities as well as individuals - 19 percent.

Fico's Smer plans to compensate for the state budget shortfall that would result from the reduced VAT rate by increasing taxes on monopolies, banks and financial institutions, although he admitted this might not prove enough to balance the loss.

"We are able to secure these changes in such a way that the final fiscal result will be neutral," Fico said, adding that cutting expenditures might be another way to achieve that balance, the SITA daily wrote.

Compiled by Martina Jurinová from press reports

Get daily Slovak news directly to your inbox

Top stories

Threats have worked. People queued for COVID testing before the official start

The nationwide testing in Slovakia started with four districts in the north. Here is a report from the first day in Orava.

Bardejov

Day two of pilot testing in hardest-hit regions is off to a smoother start

PM Igor Matovič and Health Minister Marek Krajčí are helping the sampling teams, too.

Trstená, the Tvrdošín district

Foreigner's Police will be closed during the lockdown

Those who have booked appointments from October 26-30 must reschedule.

The Foreigners' Police department in Dunajská Streda.

No test, no work. Employees will have to take paid or unpaid leave

Those who will be quarantined with a positive test result will be entitled to pandemic sick leave.

Illustrative stock photo