Consolidation package

Members of the National Council of the Slovak Republic voted to advance a consolidation package to the second reading during the 19th session. This package includes two legislative proposals aimed at improving public finances, totaling around two billion euros, along with an expected 700 million euros from a new tax on financial transactions. The second reading will take place on Tuesday, October 1, at 9:00 AM. The measures are projected to reduce the public finance deficit to 4.7% of GDP next year, down from nearly 6% this year. Key changes include raising the VAT rate from 20% to 23%, lowering the reduced VAT rate from 10% to 5%, and introducing a new 19% rate for select items. Corporate income tax will also rise for certain companies, and adjustments will be made to the child tax bonus and parental pension.

Source: TASR