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| Finance Minister Matovic Indicates VAT Rate Hike |
| Bratislava, 03.05.2021 |
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| Finance Minister Igor Matovic (OLANO) stated on Sunday that he’ll soon reveal a tax and deduction reform, as the country is lacking billions of euros due to the coronavirus pandemic.
He indicated a VAT rate hike: “This means that for covering part of the cost, we’d need, yes, to increase the VAT rate”.
This statement came a mere one day after he said that higher taxes and deductions could drive people from Slovakia.
Writing on Facebook, Matovic stated that a mother working for the minimum wage, who’s at the same time the lone provider of two children, currently earns a net of €606 per month, including tax bonuses.
“My social state that I’m dreaming of as of the summer will provide some €1,021 to the same mother,” said Matovic, adding that the same family will only pay around €20 more on VAT per month than at the moment.
When it comes to the elderly, the higher VAT rate should be compensated by an increase in pensions.
The co-governing Freedom and Solidarity (SaS) will veto any attempts to increase the VAT rate from the current 20 percent, SaS spokesman Ondrej Sprlak told TASR on Sunday.
SaS chairman and Economy Minister Richard Sulik said that any VAT rate increase is unacceptable for the party.
Sulik conceded that taxes and payroll deductions could be reformed, but “this shouldn’t be made by increasing the VAT rate and presenting populist ideas that aren’t even backed by governing coalition partners”.
Veronika Remisova, chair of another minor party, For the People, said that her party won’t support any VAT rate hike, either.
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