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Tobacco tax to be hiked

The Finance Ministry is planning to raise excise tax on tobacco and related products in order to compensate for a revenue shortfall in next year's state budget.

Finance Minister Brigita Schmognerová said November 16 that revenues would be below target following parliament's recent rejection of a bill to cut the state premium for construction savings from 25 to 20%.

The move will harmonise Slovak excise rates with those of the European Union. Slovakia's rate for tobacco products is 29.4%, whereas the EU's is 57%.

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