Debate on Consolidation Package Resumes, Final Vote to Be Held Later on Thursday

Bratislava, October 3 (TASR) - MPs have continued to debate the consolidation package at its second reading on Thursday after starting on Tuesday (October 1) morning, and the final vote should be held later in the day. The package is comprised of two legislative proposals. Most of the measures, amounting to some €2 billion, are contained in a bill amending certain laws in connection with further improving the condition of public finances. An additional €700 million should be brought into the budget by a new transaction tax. The debate on these two drafts has been merged. The Finance Ministry and coalition MPs have already announced several changes from the original government draft, but the total sum of €2.7 billion shouldn't be changed. Thanks to the consolidation measures, the deficit of public finances should drop from almost 6 percent of GDP this year to 4.7 percent. As part of the consolidation, the basic VAT rate should go up from 20 percent to 23 percent, with reduced rates decreased from 10 percent to 5 percent and a new 19-percent VAT rate for certain items introduced. Corporate taxes for businesses with profits exceeding a certain level should be increased as well. In addition, eligibility for a tax bonus for people with children and the so-called parental pension should be adjusted. ko/df