The Slovenia Times

Parliament rejects SDS proposal for VAT cut


At the height of the crisis, the higher VAT rate was raised from 20% to 22% and the reduced rate from 8.5% to 9.5% as a crisis measure, but the 2014-2018 Miro Cerar government made the rates permanent.

Arguing that budget revenue has been rising since 2014 along with economic growth, the SDS proposed restoring the pre-crisis rates as well as introducing an additional reduced rate of 5%.

The 5% rate would apply to basic necessities, such as basic food, water, medicine, books, apartments etc, as well as - after consultation with EU bodies - energy.

The government opposes the VAT cut due to fiscal consolidation. "Currently, Slovenia's budget does not allow for VAT cuts without simultaneous measures on the revenue or expenditure side," said Saša Jazbec of the Finance Ministry.


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