Finance Minister Ladislav Kamenický (left) and PM Robert Fico during an inspection day at the ministry. (source: TASR)
After an inspection day at the Finance Ministry, PM Robert Fico and Finance Minister Ladislav Kamenický (both Smer) confirmed that Slovakia is expected to consolidate public finances at around €1.4 billion next year.
The first measure will be the taxation of tobacco products and sweetened beverages with added sugar - meaning flavoured soft drinks, energy drinks and concentrates - which should bring €100 million to the state coffers. According to Fico, the coalition is in agreement on this. They should come into effect as of January 2025.
Plans to slap a tax on sugar-sweetened beverages have been welcomed by healthcare professionals but criticised by economic experts who say the levy will do little to tackle obesity, and is really being introduced to shore up budget revenues.
The company Mattoni 1873 has also criticised the government's intention to tax sweetened beverages, which it also produces. The problem with obesity cannot be solved by increasing the price of one group of products, the firm said.
Kamenický added that as of next year a new tax on electronic cigarettes, nicotine sachets and other products containing nicotine will be introduced, generating €15 million in 2025, and a further €126 million in 2026 together with the taxation of classic tobacco products.
The PM also proposed a significant reduction in the number of employees in state administration, but added that no political agreement had been reached on the matter.
According to Fico, further measures meant to facilitate the consolidation will be discussed at an upcoming meeting of the governing parties.
