Temporary VAT increase in Slovakia

The Value Added Tax in Slovakia will be increased to 20 percent, from the current 19 percent – told Iveta Radicová Slovakian Prime Minister after the meeting of the coalition council.

However, the VAT of medicines and books will remain 10 percent. The higher VAT will remain in force until the budget deficit will not fall under the 3 percent of the gross domestic product (GDP). This situation is expected to be achieved in 2013. The governing coalition calls this step "Fico tax", which aims to increase State revenues by 160 million euros – reports ProfitLine.hu.