Significant tax changes are coming in Slovakia: VAT increase and cuts to reduce the budget deficit

Contrary to Prime Minister Robert Fico’s previous promise, the basic value-added tax (VAT) rate will be increased as part of the package, from 20% to 23%, Infostart reported. At the same time, the VAT on basic foodstuffs is reduced: from 10% to 5%, while a tax rate of 19% applies to other foodstuffs.

Finance Minister Ladislav Kamenický’s 17-point package of measures envisages cuts worth a total of 2.7 billion euros, which includes both spending reductions and revenue increases. The goal is to reduce the budget deficit from 5.6% to 4.7% in 2024.