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Slovakia: Proposal to reduce VAT on fresh produce rejected
A proposal by politician Alojz Hlina for an amendment to the VAT act to reduce taxing on foodstuffs has been rejected by the Slovakian government.
Hlina's proposal aimed to reduce the value added tax on basic fresh foodstuffs from 20 to 10 percent. "It is better to have cheaper food than to be able to travel by train for free," argued Hlina unsuccessfully. A lower tax rate would apply to basic fresh unprocessed foods, such as fruits, vegetables, meat, milk, water and natural mineral water, eggs, butter and bread.
"People in Slovakia pay one of the highest VAT for fresh food in Europe," said an opposition member. Lower VAT on unprocessed foods would help consumers, according to him, since the prices of staple foods would be reduced, thereby helping producers and food processors. "In the long run, it may even help improve the health status of the population," said deputy.