Ministries finally agree on investment aid applications

The Slovak Economy Ministry and Finance Ministry have finally agreed on providing investment incentives to companies Mondi SCP and Samsung. Finance Minister Peter Kažimír said last week he would try to delay these investment incentives until later, as next year he wants to focus on the consolidation of public finances.

The Slovak Economy Ministry and Finance Ministry have finally agreed on providing investment incentives to companies Mondi SCP and Samsung. Finance Minister Peter Kažimír said last week he would try to delay these investment incentives until later, as next year he wants to focus on the consolidation of public finances.

The Economy Ministry has now submitted a new text on these incentives for investors. "This represents a significantly reduced volume of tax breaks next year for Samsung. Mondi SCP will not get any tax breaks the following year," Stanislav Jurikovič, spokesman of the Economy Ministry told the SITA newswire after the negotiations. Based on the new proposal, next year Samsung would draw incentives in the form of tax breaks of only €980,000 instead of requested €2.5 million. The next year, this would be €8.92 million and in 2015, €9.9 million. In total, Samsung should receive incentives worth €19.8 million. In return, the company pledges to invest €70 million to modernise its plant in Galanta and preserve 760 jobs for at least six years.

Mondi SCP will start drawing incentives in the form of income tax relief in 2014, which according to the original plans it should have received as of next year, when it was supposed to have used a tax credit of €10.5 million. In the first year, the company will be able to apply for tax relief worth €6 million. In total, this company should receive investment aid worth €25.4 million. The company plans to invest €95 million over four years to expand its factory and preserve 766 jobs.

The cabinet should decide on Wednesday on incentives for seven other companies: Magneti Marelli, Bekaert Slovakia, Delta Electronics, Continental Automotive Systems Slovakia, Muehlbauer, and Ekoltech Fagor Ederlan. Their investment aid in the form of income tax relief is nearly €56 million. "These investors should benefit from the incentives after 2014," said Jurikovič.

(Source: SITA)
Compiled by Zuzana Vilikovská from press reports
The Slovak Spectator cannot vouch for the accuracy of the information presented in its Flash News postings.

Top stories

The referendum is said to protect traditional families.
Politics & society

Turnout key to referendum result

EVEN amid heated discussion about the content of a February 7 referendum targeting the constitutional definition of family, experts say the biggest test for supporters of the Alliance for Family (AZR) ballot initiative is whether turnout surpasses the required 50-percent quorum of eligible voters.

26. Jan 2015
One of the drugs to be withdrawn from pharmacies.
Business

Eleven generic drugs withdrawn from Slovak pharmacies

Slovak State Institute for Drug Control (ŠÚKL) on January 28 suspended the distribution of 11 generic drugs and withdrew them from the market.

29. Jan 2015
Krásna Hôrka Castle ablaze.
Culture & lifestyle

Reconstruction on Krásna Hôrka Castle continues

THE RECONSTRUCTION works on the Krásna Hôrka Castle, which was severely damaged by fire in 2012, continue in accordance with the plans, Judita Krajčiová of the Slovak National Museum (SNM) told the TASR newswire.

27. Jan 2015
Tom Nicholson
Opinion

Economy Minister Pavlis has to go

No one with such an obvious conflict of interest has any place in government.

30. Jan 2015