Fico: VAT Cuts on Basic Foods to Have Significant Anti-inflationary Character

Bratislava, December 20 (TASR) - The decision by the Slovak government to cut VAT on basic foodstuffs to 5 percent will have a significant anti-inflationary character, Prime Minister Robert Fico (Smer-SD) averred at a press conference after his meeting with food producers on Friday. "I'd like to express appreciation for the quality social dialogue we've held with the entire chain. We agreed that we don't want to utilize the radical price tools that the government has at its disposal when we're capable of accomplishing results through a quality social dialogue. This is an important issue for the government, making sure that people can enjoy affordable, quality and safe foodstuffs," said Fico. The prime minister added that the government is prepared to take all measures necessary to cushion inflation, which has begun to rise across the whole of Europe, to the maximum extent. Fico also praised retail chains as being the best tool for cutting prices. "I appreciate the fact that a prominent campaign has been ongoing at these retail chains regarding a decrease in prices even before Christmas. Some retail chains have already translated VAT cuts to their products," he said. Another meeting with food producers is to be held in early January. "We agreed to draft a timetable for the meetings and topics to discuss as of next year. I'm ready, along with Agriculture Minister Richard Takac (Smer-SD), to meet the entire chain a minimum of three times," said Fico. mf/df