Slovakia increases VAT temporarily

BusinessEconomy ♦ Published: September 9, 2010; 15:19 ♦ (Vindobona)

As soon as the budget is back on its feet, the tax will be 19 percent again, according to Prime Minister Iveta Radicova. A deficit of up to eight percent is forecast for 2010.

Slovakia increases VAT temporarily / Picture: ©

The new Slovak center-right government has decided to increase VAT from 19 to 20 percent. The measure is only "temporary", assured Prime Minister Iveta Radičová on Monday evening. Once the budget deficit is below three percent of the gross domestic product (GDP), we will return to the previous tax rate.

The current government, in office since mid-July, promised to…