Spectator on facebook

Spectator on facebook

Government to reduce VAT if deficit under 3 percent, Fico says

If the state budget deficit drops below 3 percent of GDP, the VAT will drop from current 20 percent to 19 percent, as it is stated in the relevant legislation, said Erik Tomáš, the Government Office spokesman. Tomáš was responding to news reports that said the government may introduce legislative changes seeking to maintain VAT at its current level despite the potential drop in deficit under 3 percent of GDP, the TASR newswire reported July 26.

If the state budget deficit drops below 3 percent of GDP, the VAT will drop from current 20 percent to 19 percent, as it is stated in the relevant legislation, said Erik Tomáš, the Government Office spokesman. Tomáš was responding to news reports that said the government may introduce legislative changes seeking to maintain VAT at its current level despite the potential drop in deficit under 3 percent of GDP, the TASR newswire reported July 26.

“The official stance of the government, repeatedly confirmed in previous period by the Finance Ministry, still holds true,” Tomáš said, as quoted by TASR.

The public deficit is expected to fall in 2013, which means VAT might drop in 2015. The legislation promising the decrease in VAT was ushered in by former Prime Minister Iveta Radičová’s government in 2011 as a temporary measure, until the deficit was stabilised.

If VAT is reduced back to pre-2011 level, it would amount to a drop of some €180 million in state revenues annually, TASR wrote.

Source: TASR

Compiled by Radka Minarechová from press reports

The Slovak Spectator cannot vouch for the accuracy of the information presented in its Flash News postings.

The processing of personal data is subject to our Privacy Policy and the Cookie Policy. Before submitting your e-mail address, please make sure to acquaint yourself with these documents.

Top stories

We want a decent Slovakia, people chanted in squares

On the eve of the Velvet Revolution anniversary, people protested in the thousands, calling for a decent Slovakia.

Bratislava protest November 16, 2018

What we didn't know about our freedom

In 1989, we thought that once the job was done, we would only go out to the squares for Sunday walks.

November 1989 in Bratislava

The courage to fight for democracy

Authoritarian societies squander the possibilities of human achievement, of lives lived to their fullest, writes the US ambassador to Slovakia.

Illustrative stock photo

While France has Beaujolais Nouveau, Slovakia has St Catherine's wines

This warm summer with an early harvest was a blessing for young wine.

St Catherine's wines