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Reader feedback: From one government kitty to another

Re: Smer proposes reduced VAT rate of 5 percent, Flash News Briefs, Volume 12, Number 25, June 26 - July 2, 2006

As long as the state controls the medical aid fund, a reduction of VAT on medicine will merely shift funds from one government kitty to another. People would benefit if premiums are lowered, or medical aid is privatised, but that is, so I thought, exactly what Fico does not want to do. As far as reducing the VAT rate on certain food stuffs, it would be better to scrap the VAT on fresh fruit and vegetables all together, arguing that, since hardly any value is added to produce, no tax is levied on it. That way, the term "flat tax" can be maintained.

Be that as it may, I think Fico should fully concentrate on forming a government [if he can]. Talking about what the government is going to do only makes sense after one is in place.

Oscar, De Panne,
Belgium

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