Slovakia to cut VAT on fresh meat to 10%
In mid-July, Fico announced that his government would complete the process of drafting the bill on the reduced rate shortly.
The list of products that are to be subject to the reduced VAT rate is currently being debated by the Slovak government and, under the plan, the bill is due is to be drafted by the end of August, according to the information obtained by local daily Slovak Spectator.
“We’re in the final stages,” Fico said. “We’re putting the finishing touches to the list of items. But what I said at our [party’s] congress still holds – we’re talking about fresh meat, milk, bread and some fish products here.”
The prime minister specified that the measure will not impact on other meat products.
'Fresh meat'
“I have to stress that it will concern fresh meat, as we aren’t interested in supporting imports of frozen meat,” Fico said.
The move will be part of the so-called second social package by the government. The parliament is expected to have a vote on the reduced VAT this November, reports local newspaper SME and, once it is passed, the measure will be implemented in early 2016.
Meanwhile, local meat industry players expect the VAT reduction on fresh meat to significantly increase demand in the domestic market, as it is currently set at a higher level than in the country’s neighbouring markets. In comparison, in the Czech Republic, the reduced VAT rate on basic food products is 15%, while in Poland, basic food products are subject to a VAT of 5%.
Cut state revenues
Together with other planned measures, the Slovak government estimates the VAT decrease will cut the state revenues by a total of €1 billion.
In 2013, an average Slovak consumed some 53.3kg of meat, which represented an increase of 1.5% compared with a year earlier, when it totalled 52.5kg, according to figures released by the Statistical Office of the Slovak Republic (SUSR).
Pork dominated the country’s meat consumption, with 30.9kg consumed on average, while beef and veal meat totalled 4.4kg per capita, poultry meat represented 16.9kg per capita, and other types of meat held an aggregate 1.1kg per capita.
