Keketi: Five-percent VAT Tax to Apply to Entire Tourism Sector

Bratislava, September 26 (TASR) - Restaurants and accommodation services will fall under the 5-percent VAT tax category, Minister of Tourism and Sports Dusan Keketi (SNS nominee) announced at a press conference attended by SNS leader Andrej Danko on Thursday. Originally, the government-sponsored proposal contained 23 percent VAT in this regard. "After weeks of difficult talks and weeks of coordinating our steps with associations and representatives of the sector, we managed to make sure that the entire tourism sector - that means both restaurants and accommodation - will be taxed with the 5 percent VAT rate," claimed Keketi. "In Poland the rate is eight percent, in the Czech Republic 12 percent, in Hungary 5 percent and in Austria 10 percent on both tourism segments in question. I trust that this will help boost the competitiveness of ours. According to numbers supplied by the associations, it'll help save more than 15,000 jobs and boost income of regional authorities," added the minister. Andrej Danko claimed that talks with the Finance Ministry on lower VAT on tourism were "tough". "The Ministry of Tourism and Sports has proven its worth even in this dialogue. The money we'll help save hotel owners, tourism but also restaurants are going to be returned to Slovakia. Slovakia has a potential to earn up to €10 billion in tourism and sports," he underlined. Danko noted that if the tourism were not given the 5-percent VAT rate under the consolidation measures, SNS would block the passing of the state budget. "If that doesn't happen, I'm willing to block the entire state budget," he added. mf/mcs