Several measures from Slovakia’s fiscal consolidation package, including new VAT rates, took effect this January. The VAT on selected food items and medicines dropped from 10% to 5%, while a 19% rate now applies to most other foods. Major retailers have already lowered prices on items like bread vegetables and meat. Pharmacies also cut prices on over a thousand products including painkillers. However, VAT on supplements and cosmetics increased to 23%. Despite the reductions, only about one-third of food products will see price drops. Analyst Ľubomír Drahovský explained that non-subsidized food production and unclear VAT categories limit broader price decreases. He expects the reduced 5% VAT to help stabilize basic food prices in the coming months.
Source: STVR
