Ljubljana - The Health Ministry has proposed that the seventh stimulus package include a provision on remission of value added tax (VAT) for Covid-19 vaccine, tests, testing and vaccination kits, and all related medical services, the ministry said on it web site on Wednesday.

If the proposal is accepted, all vaccination points, hospitals, community health centres, concessionaires, mobile units, and all those conducting tests will be able to buy Covid-19-related substances and products without paying VAT.

According to the ministry, the proposal follows an agreement adopted at the EU level.

So far member states were allowed to lower VAT on vaccines but not for testing and vaccination kits, but from now on zero VAT will be possible with countries deciding for themselves how much VAT will be paid and which substances, equipment and services will be freed from the tax altogether.

The ministry believes cheaper testing will allow for more tests and that cheaper vaccination will lift a part of the burden off the health system. The testing and vaccination will also involve less paperwork, it said.

Under the proposal, which is yet to be confirmed by the government and parliament, the new tax cut would be in force until the end of 2022.