The government will reduce VAT on food, electricity, medicines, medical devices, and textbooks, while increasing it on most other goods. Prime Minister Robert Fico called this a "historic compromise," despite previously opposing VAT hikes. The basic VAT rate will rise from 20% to 23%, which is expected to generate around EUR 900 million. However, experts warn that lower prices may be offset by businesses’ margins, and the measure could lead to higher inflation next year. Fico emphasized the government's goal of ensuring the VAT reduction on basic foodstuffs benefits consumers, with a roundtable planned to discuss its implementation. Retailers expressed their commitment to translating the 5% VAT rate into lower food prices.
Source: TASR
Kristína Hanáková, Photo: TASR
