Slovak Food Chamber Warns VAT Hike Will Impact a Quarter of Food Purchases, Including Items for Children & Allergy Sufferers
Bratislava, Slovakia – A planned increase in Value Added Tax (VAT) from 19% to 23% on certain food items will impact far more than just “unhealthy delicacies,” according to teh Food Chamber of Slovakia. The chamber is warning the government’s move, intended to consolidate public finances, will ultimately affect up to a quarter of all Slovak food purchases, including products specifically designed for young children and individuals with allergies.
The government announced this week the VAT increase would target foods with higher sugar and salt content, initially citing items like chocolates, biscuits, chips, salty sticks, jams, and raspberries. Though, a detailed analysis of the government’s list by the Food Chamber reveals a much broader scope.
“It is one big chaos,” a representative from the chamber stated, criticizing the lack of clarity surrounding the tax increase. “They talk about higher taxes on selected food manufacturers.”
The Chamber also expressed concern that the higher prices resulting from the VAT increase will contradict the government’s stated goals of promoting food security and self-sufficiency within Slovakia. They argue increased costs will reduce domestic consumption and disadvantage Slovak producers competing with foreign imports.
Traditionally cautious in their public statements due to reliance on government subsidies, food industry representatives are now voicing unusually strong criticism. The Food Chamber warns the VAT hike will not only impact consumer wallets but also undermine the viability of the Slovak food industry.
