Trade Association welcomes tax cut on healthier foods

The Association of Trade and Tourism (ZOCR SR) welcomes the Government's decision regarding the upcoming reduction of value added tax (VAT) on selected types of food. Fears that traders will not translate the VAT reduction into prices are not justified, say representatives of the association because traders honour the laws and abide by them. "On January 1, retailers will reduce prices of the selected products that will be listed by the law by 8.33 percent since the 10 percent VAT rate, according to the calculation methodology will be reflected in the final price of the product with 8.33 percent. I can say that no major retailers will increase margins at the expense of this VAT reduction", ZOCR SR President Pavol Konštiak told Friday's news conference.