PS: Consolidation Measures to Cost Average Family of Three About €1,000 (2)

Bratislava, September 18 (TASR) - The consolidation measures unveiled by the government will cost an average family of three members about €1,000 annually and this is going to impact mostly those most vulnerable to poverty, particularly single parents and families with several children, opposition Progressive Slovakia (PS) chair Michal Simecka declared at a press conference on Wednesday. "A massive VAT tax increase will carry over into all sectors of the economy. Today, Slovakia is the only country among the new EU members, which has grown poorer over the past decade. Other countries saw growth in living standards because salary growth there has outpaced the rising prices and living costs. Now these statistics are bound to get even worse," claimed Simecka. MP Stefan Kiss added that a slight drop in VAT on foods won't offset the planned VAT hike to 23 percent because other goods make a much larger share in overall consumption. "The governing coalition is attempting to create an impression that the bill will be footed by the rich. I, however, don't know a single person who doesn't pay VAT. The growth in prices will be enormous and affect everyone," stated Kiss. He believes that the 2025 inflation will exceed five percent and cause real wages to drop. Kiss pointed out that the government originally promised a consolidation package worth about €1.7 billion, but yesterday announced a package worth €2.7 billion instead. "That's because the cabinet is preparing reserve money for handouts and populism," he claimed. The introduction of a tax on financial transactions for businesses will have a total impact of €600 million. "That constitutes a brutal disruption of business activities and tax collection," warned Kiss, adding that it's reasonable to expect many businesses to leave Slovakia as a result. mf/mcs