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Parliament Approves VAT Rate Increase to 20 percent in First Reading
Tuesday 12 Octtber 2010 Zoom in | Print page
Bratislava, October 12 (TASR) - Parliament on Tuesday in first reading approved the bill increasing the basic VAT rate from 19 percent to 20 percent, and abolished the exemption that allowed coal and natural gas to be free of excise tax if used by heat plants for production of heat for households.
Both bills are part of the Government's consolidation package.
Opposition Smer-SD MP Jozef Burian in Parliament described the temporary VAT increase as a "lapse crying to heaven". Finance Minister Ivan Miklos (SDKU-DS) responded that if the former Smer-led government hadn't stolen that much, the current Government wouldn't have been forced to employ such tough austerity measures.
The temporary VAT rate increase should bring into the state coffers €185.5 million in 2011, €196.3 million in 2012 and €209.3 million in 2013, before it is returned back to 19 percent.
As for the coal and gas bill, the related report says that the current legislation is at odds with the European direction on taxing energy products and electricity. The Finance Ministry expects from the measure to bring in €8.6 million in 2011, and around €14.2 million each in every further year to come until 2014.
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