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Kažimír agrees with automatic investment incentives
29 Jul 2014 Flash News
FINANCE Minister Peter Kažimír said he agrees with the idea of automatic investment incentives for entrepreneurs.
"In principle, I agree with the mechanism for the automatic applicability of incentives for investments, because it excludes the arbitrary selection of companies," Kažimír said in regard to investment incentives worth €58 million for chemicals company Duslo Šaľa, speaking after the extraordinary session of the cabinet on July 28, as quoted by the TASR newswire.
"I'm not pleased about any incentive, but the reality is that we're competing for investments with neighbouring countries such as Hungary, Poland and the Czech Republic. According to the information that I have, in this case the company is essentially deciding whether to stay or move its production to Germany or the Czech Republic," said Kažimír in regard to the tax relief of nearly €60 million in the form of a 10-year tax holiday granted to Duslo Šaľa, which is owned by business tycoon of Slovak origin and incumbent Czech Finance Minister Andrej Babiš.
Duslo Šaľa, a division of Babis’ Agrofert, indicated it was considering leaving Slovakia already a few months ago, complaining mostly about high energy prices. About 800 jobs in Duslo Šaľa were at stake. It planned to move the production to the Czech Republic or Germany, the TASR newswire wrote.
The European Commission will have the last say in the tax holiday that would concern the production of ammonia.
Until recently, Slovak legislation has not enabled stimuli without opening new jobs, Sme wrote. However, the ruling Smer party adjusted the legislation this spring through the law on protection of consumers, shortly after the departure of Duslo from Slovakia started to be discussed.
Compiled by Michaela Terenzani from press reports.
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