BRATISLAVA, September 5, (WEBNOVINY) – The Coalition Council will decide on the potential hike of the value added tax (VAT) rate on Monday. Prime Minister Iveta Radicova (SDKU) said in this respect that the matter is being talked about and considered to avoid imposing a tax burden on work. In the “O 5 Minut 12” political program on the Slovak Television, Radicova confirmed that the ruling coalition would seek solutions to make consumption costs fairer, maybe for a temporary period of time. She further assured that the coalition, as usual, would offer compensations. Radicova mentioned as an example changes in fees related to certain exemptions in the health sector or the caps on fees for drugs introduced for citizens with low income.
According to the prime minister, several alternatives are available with regard to the excise tax on tobacco products and alcohol. She takes into account arguments related to the domestic wine production; in her words, the Cabinet does not want to put local producers at a disadvantage.
The coalition party Freedom and Solidarity (SaS) objects to increasing the value added tax (VAT) rate, which was also mentioned in the party election program. “We have clearly said that we will not agree to this,” SaS leader Richard Sulik announced in the “O 5 Minut 12” political program on the Slovak Television. The speaker of the Slovak parliament refused to specify the agreement within the coalition upon this matter until the partners attain the final consensus. He added that the coalition would come up with more sophisticated solutions within a comprehensive concept rather than mere rate hikes.
Leader of the strongest opposition party SMER-SD Robert Fico rebuked Iveta Radicova’s Cabinet, adding that it has been the least prepared and the least systemic government since 1989. In his opinion, the Cabinet is simply preparing for privatization and, therefore, creating an image that the domestic economy is in bad condition. Fico stated that the gravest decision made by this Cabinet was to halt the D1 highway construction. The SMER leader specified that the value of construction works alone reached EUR 2.4 billion and this money was supposed to be the driving force of the Slovak economy in a period of about three years, i.e., until the completion of the highway. He accused the center-right Cabinet of gradually putting larger projects on ice.
Radicova slammed the project as overpriced and countered that her Cabinet has not halted the highway construction; it just is not willing to pay so much. The prime minister gave assurances that the highway will be built. The Cabinet will primarily direct all finances to the highway construction and plans changes to the national priorities set for EU funds. A private investor will be allowed to join the project only under different conditions compared to terms of the failed D1 PPP project.
SITA
