President of the Confederation of Trade Unions of the Slovak Republic (KOZ SR), Monika Uhlerová (source: TASR)
Slovakia’s main trade union federation has proposed its own plan for repairing public finances, warning the government against repeating austerity policies that disproportionately affect workers and low-income groups.
In a response to the labour minister’s call for input from social partners, the Confederation of Trade Unions of the Slovak Republic (KOZ SR) submitted a set of proposals that aim to make the fiscal consolidation process more equitable.
The union calls for better tax collection, higher property and environmental taxes, and a more progressive tax system. On the spending side, it advocates more efficient state management while protecting ordinary households and collective bargaining.
KOZ SR criticised recent cost-cutting measures for lacking proper dialogue and for placing too much pressure on vulnerable groups. It is demanding a clear timeline and formal involvement of unions in shaping future reforms.
The federation stressed that fiscal recovery must be part of a broader, long-term strategy – including tax reform, decentralisation and industrial policy – and not rely on short-term or one-sided decisions.
It emphasised that the process must be based on agreement among social partners and avoid deepening social inequality.
KOZ proposals
Spending-side proposals
The Confederation of Trade Unions of the Slovak Republic is calling for more targeted government support and structural reforms to reduce public spending without harming vulnerable groups.
Energy aid should be targeted. The current system should be replaced with a gradual and socially acceptable increase in energy prices. Households with low incomes should receive more support, while excessive energy use in luxury properties should no longer be subsidised. KOZ SR recommends introducing a housing allowance.
Slimmer, more efficient public administration. Instead of across-the-board staff cuts, the government should consider merging ministries and agencies. Reducing the number of deputy ministers and taxing lump-sum expense reimbursements for top officials are also under review.
Improved efficiency in public services, including lower IT operation costs and continued digitalisation.
High-quality public services must be built on an independent and professional civil service.
Regular spending reviews and performance evaluations of public services should become standard practice.
Revenue-side proposals
To increase public revenues, KOZ SR recommends a mix of administrative reforms, green taxes and progressive taxation:
Tackling tax evasion and boosting compliance
More frequent and better-quality tax inspections — the current rate of 0.8 inspections per 100 entities is deemed too low.
More state services should move online.
Eliminate partial VAT deductions on mixed-use commercial property and company cars.
Lower the €15,000 limit on cash transactions and promote electronic payments.
Reward compliant taxpayers; consider mandatory bankruptcy or restructuring for businesses that declare losses for three consecutive years.
Audit and reduce tax exemptions and reliefs.
Environmental and sin taxes
Expand road tolls for freight vehicles and adjust rates based on CO₂ emissions; factor emissions into vehicle taxes.
Tax non-recyclable packaging, raise air pollution and landfill fees, and link environmental charges to inflation.
Increase taxes on gambling and alcohol, expand taxation of non-tobacco nicotine products, and introduce a tax on outdoor advertising.
Property taxes
Raise taxes on luxury and commercial real estate.
Corporate and personal income tax reform
Adjust minimum corporate tax licences based on taxable income.
Raise corporate income tax from 21 percent to at least 22 percent, with higher rates for companies earning over €10 million. The lowest bracket should be taxed at a minimum of 15 percent, and top rates should reach at least 25 percent, in line with personal income tax.
Raise dividend withholding tax from 7 percent to at least 10 percent.
Introduce a 35 percent income tax rate for individuals earning over €120,000 annually.
Source: KOZ SR
