BUSINESS IN SHORT

FinMin ups tax prognosis

THE STATE’S revenues from tax and payroll tax collection should be €290 million higher this year than estimated by the Finance Ministry in its February analysis. The main reason is better collection of the value-added tax (VAT), but also higher revenues from corporate taxes.

THE STATE’S revenues from tax and payroll tax collection should be €290 million higher this year than estimated by the Finance Ministry in its February analysis. The main reason is better collection of the value-added tax (VAT), but also higher revenues from corporate taxes.

Regarding VAT, Finance Minister Peter Kažimír praised the “successful fight against tax evasion”.
“The state’s income is also positively impacted by the overall macro-economic climate, a better situation in the labour market and reviving household consumption,” the minister said, as quoted by the TASR newswire.

Kažimír stressed that the effective VAT rate has been rising for six quarters. At the moment, it stands at 14.1 percent. VAT in Slovakia is currently set at 20 percent, with certain goods, like medicine and books, having a reduced rate of 10 percent. The effective tax rate means that the state, due to tax evasion, in fact collected an amount as if the rate were actually set at 14.1 percent, TASR wrote.

Kažimír also praised the income from the corporate tax, which was elevated to 23 percent as of 2013. The ministry increased its October forecast of this tax for this year by more than €80 million.
“We collected almost €360 million compared to what it would be if the rate were at 19 percent,” he said, as quoted by TASR, adding that companies do not seem to have been more inclined towards evading taxes.

The Finance Ministry expects further increases in tax revenues over the next few years. The prognosis for 2015 and 2016 has been upped by €200 million, while the estimate for 2017 is €145 million more.

The actual collection of VAT may eventually be even better. The forecast still does not include the positive risk from the recently adopted measures to further suppress tax evasion. The most significant is the introduction of ledger statements, the SITA newswire wrote.

However, the Finance Ministry is not so optimistic when it comes to collecting taxes from the self-employed.

Top stories

International

Slovakia will pay €70 million for EU presidency

HUNDREDS of people will get a commemorative coin, a scarf and a tie at the events organised during Slovakia’s presidency over the Council of the European Union in the second half of 2016.

03. Mar 2015
Slovak President Andrej Kiska (l) and NATO Secretary General Jens Stoltenberg (centre)
International

Kiska discusses conflict in Ukraine with NATO secretary general

“The modern weapon systems are not enough for us, we have to know how to prevent the organised spreading of disinformation,” the president said.

03. Mar 2015
Tesco is the largest British investor in Slovakia
Business

Tesco might quit Slovakia

BRITISH retail chain Tesco is pondering quitting Slovakia after 19 years and selling 155 outlets, 18 filling stations and two big distribution stores, the Sme daily wrote.

02. Mar 2015
Mainly-Roma borough of Košice.
Politics & society

Ex-officers suspected of bullying Roma minors acquitted by court

THE KOŠICE District Court acquitted former police officers prosecuted for the bullying of Roma boys that allegedly occurred on March 21, 2009, at a Košice police station.

02. Mar 2015