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President Signs Bill on VAT Hike Into Law
Tuesday 14 December 2010 Zoom in | Print page
Bratislava, December 14 (TASR) - The basic VAT rate will be increased from 19 percent to 20 percent as of January 1, while the special 6-percent VAT rate on foods sold directly from farms will be abolished, as President Ivan Gasparovic signed legislation to this effect on Tuesday.
The VAT rate increase is part of the government package aimed at consolidating public finances, which are set to reach a deficit of 8 percent of GDP next year. This temporary measure is supposed to be lifted after the deficit is squeezed below 3 percent, which is expected to happen in 2013.
The measure should bring into state coffers an extra €185.5 million in 2011, €196.3 million in 2012, and €209.3 million in 2013.
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