Huliak Conditions Further Support for Consolidation on VAT Law Amendment

(TA3,'V politike', 12 April) Speaking on TA3's discussion programme 'V politike' (In Politics) on Sunday, Tourism and Sport Minister Rudolf Huliak (Independent) said that he is making support for further consolidation measures conditional on approval of a proposal to scrap VAT refunds in some sectors. Without such a measure, Huliak sees no reason to support steps that, in his opinion, would burden citizens. "I see no reason to consolidate if they are unwilling to take this measure and if we want to continue to create room for VAT refund-related frauds. I see no reason for us to agree to measures that would affect the wallets and living standards of the people of Slovakia," said the minister. According to Huliak, VAT refunds should be scrapped mainly in the field of advertising, IT and consultancy, where he believes fraud is most common. "We want to guarantee that all VAT refunds are gradually scrapped and ensure that between €900 million and €1 billion, possibly even €1.3 billion, flows into the state budget through VAT collection," said Huliak. Huliak stressed that the measure shouldn't burden households, quite the opposite. "Every Slovak family today pays some €600 a year for VAT fraud. We are bringing a solution that should stop this without affecting people's wallets," he said. Huliak admitted that the proposal didn't meet with understanding at the Coalition Council meeting and doesn't yet have support and that's why he's submitting it as an MP's initiative. The opposition agrees with the aim of combating tax fraud, but has reservations about the proposal itself. His opponent on the show, MP Tamara Stohlova (Progressive Slovakia/PS) warned that a blanket restriction on VAT refunds could disrupt the functioning of the existing VAT system within the European Union. "Such an intervention in the tax system may bring chaos and confusion in practice. It is not a tool intended for long-term and widespread use," she said. At the same time, she criticised the fact that the proposal is being submitted to Parliament as an MP's bill and not as a government measure. "I think that the coalition doesn't actually have the will to fight corruption and tax fraud, and that is precisely why Mr. Huliak has to communicate this publicly rather than with his coalition partners," she added. ko