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Retail

Slovakia Halves VAT On Staple Foods

Slovakia has reduced VAT on a specified list of staple foods, such as bread, meat, milk, and butter, from 20 per cent to 10 per cent as of January 1.

According to Ľubomír Drahovský, an analyst with the Terno market research agency, reducing VAT by at least one half should prevent cross-border purchases, as neighbouring countries currently have significantly lower VAT on food than Slovakia.

“Moreover, it would create space to allow not only big domestic production, but also local production to find its place in the market,” Drahovský told The Slovak Spectator weekly.

Within the EU, the average VAT rate for food is eight per cent, according to EU statistics.

Last year, following a similar initiative by an opposition MP, the Slovak parliament rejected the proposal to reduce VAT to 10 per cent on fresh produce.

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