Parliament has enacted a VAT cut from 20 to 10 percent applicable to items such as meat from cattle, domestic pigs, sheep and goats, both fresh and frozen, as well as milk, butter and fresh bread. The Prime Minister Robert Fico announced that the Government will sign a memorandum with producers and retailers to ensure that the slashed VAT on selected foodstuffs will actually be seen in their end prices for consumers. At the same time, the premier announced that, in the first few months of next year, consumers are set to be able to keep track of price difference by means of dual price displays. He went on to call the measure, which is included in the Government's second social package, a "historic decision". It will set the state back some €77 million, but Fico said that the state coffers can afford such an expense. "On the one hand, we're succeeding in bringing order into public finances and are consolidating; while on the other increasing tax collection too, as a result of the fight against tax evasion", said Fico. He added that this gives the Government an opportunity to share the good economic developments with the public. The measure is also designed to support Slovak food producers, as they supply stores with the items to which the lower VAT will apply. "Why should we spend funds from the state budget on lower VAT on frozen chicken imported from elsewhere?" he asked.
Source: TASR
