Spectator on facebook

Spectator on facebook

Shopping tourism causes €18.7 million shortfall in 1Q09 VAT revenues

A shortfall in VAT revenues due to 'shopping tourism’ – in which some Slovaks started shopping in neighbouring countries following the devaluation of the currencies of nearby countries – may have reached €18.7 million in the first quarter of 2009, the Finance Ministry said on Thursday, July 2, as reported by TASR.

A shortfall in VAT revenues due to 'shopping tourism’ – in which some Slovaks started shopping in neighbouring countries following the devaluation of the currencies of nearby countries – may have reached €18.7 million in the first quarter of 2009, the Finance Ministry said on Thursday, July 2, as reported by TASR.

The negative effect on VAT revenues due to 'shopping tourism' will continue to accumulate throughout this year and could reach €56.2 million by the end of the year, according to the ministry.

“The deceleration in final consumption of households from 5.6 percent to 0.5 percent saw the largest percentage fall in terms of VAT (incomes)” says the Finance Ministry's analysis.

Terno supermarket analyst Ľubomír Drahovský told TASR that the shortfall in VAT revenues isn't as large as it appears from today's perspective. “The year-on-year fall in VAT revenues could be only at around 10 percent,” he said.

Drahovský also pointed to the increased unemployment rate as a factor that may have caused households to behave more frugally. He suggested that the state should respond to this by aiding tradespersons or the self-employed sector.

Compiled by Zuzana Vilikovská from press reports
The Slovak Spectator cannot vouch for the accuracy of the information presented in its Flash News postings.

Top stories

Governmental campaign should bring Slovaks home from the UK

The Slovak cabinet plans to persuade its expats living and working in the UK with at least a bachelor degree to return home: a campaign offering specific jobs should help.

Young researchers, IT experts and medical staffers are needed in Slovakia, illustrative stock photo.

EU lawyers claiming the Russian annexation of Crimea as legal is a hoax

One lawyer does not mean all EU lawyers; immigrants attacking a shepherd dog and HAARP causing hurricanes in the US are hoaxes, too.

Hoax on immigrants attackign two German shepdherds and ebing bitten yb them

Co-founder and co-owner of Sme daily dies

A major Slovak entrepreneur, Peter Vajda, died in Prague on October 15. He was exceptional for his innate sense of democracy and believing in equal opportunities for all.

Peter Vajda

Šefčovič: Slovakia’s economy has grown 60 percent since joining the EU

Slovak consumers are growing economically stronger and will be an important stabilisation factor in the future

European Commission Vice-president for Energy Union Maroš Šefčovič