LOWERING Slovakia's income tax rate from 19 to 15 percent by 2010, in gradual cuts of one percentage point each year, would have no negative impact on the amount of taxes collected, according to Finance Minister Ivan Mikloš.
"We predict that people would be more willing to pay these taxes, meaning that the scope for tax evasion would be eliminated," said Mikloš at a press conference on April 28.
According to Mikloš, the gradual cuts of one percentage point each year with the goal of reaching 15 percent in 2010 would also increase foreign investments to Slovakia and boost economic activity.
Lower tax incomes from individuals will be compensated by higher profits and the resulting taxes paid on these profits, TASR wrote.
The definitive income tax results for 2005 will not be known until this autumn, Mikloš added.
According to the preliminary figures of the Slovak Tax Bureau, however, the amount of income tax from legal entities should reach Sk39.1 billion (€1.04 billion) or 2.7 percent of GDP in 2005.
According to the Finance Ministry's current macroeconomic prognosis and the 2005 projected yield, the income tax of legal entities should be Sk43.9 billion in 2006.
8. May 2006 at 0:00 | From press reports