Slovenia's Gov't Cuts VAT on Energy Products From Sep 1
Photo by NinaMalyna/Shutterstock.com
Slovenia's government decided to reduce value-added tax (VAT) on energy products for all users at Thursday's session, Finance Minister Klemen Boštjančič said as cited by state news agency STA.
The reduced tax rate of 9.5% will apply for the heating season, from September 1 to May 31 next year.
The government proposes to reduce VAT on supplies of electricity, natural gas, firewood, and district heating.
The lower VAT on electricity and natural gas adds to the measures already taken to regulate the prices of these energy products, but when it comes to firewood and district heating, the reduced VAT rate is the first such measure the government is taking to mitigate price hikes, Boštjančič said.
The lower VAT will result in a roughly EUR 130 million (USD 132.9 million) shortfall in the state budget, some EUR 40 million less this year and EUR 90 million less next year.
SUPPORT THE BUDAPEST BUSINESS JOURNAL
Producing journalism that is worthy of the name is a costly business. For 27 years, the publishers, editors and reporters of the Budapest Business Journal have striven to bring you business news that works, information that you can trust, that is factual, accurate and presented without fear or favor.
Newspaper organizations across the globe have struggled to find a business model that allows them to continue to excel, without compromising their ability to perform. Most recently, some have experimented with the idea of involving their most important stakeholders, their readers.
We would like to offer that same opportunity to our readers. We would like to invite you to help us deliver the quality business journalism you require. Hit our Support the BBJ button and you can choose the how much and how often you send us your contributions.