Parliament Definitively Approves Package of Consolidation Measures

Bratislava, October 3 (TASR) - MPs on Thursday definitively approved a package of measures to consolidate public finances next year. 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. The package is comprised of two legislative proposals. Both of them were dealt with via short-tracked legislative procedures. 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. Parliament made several changes to the original government draft via amending proposals. With regards to several amendments to the laws, various parts of the consolidation package will take effect gradually, the first of them as of November. ko/df