Finance Minister Ivan Mikloš said March 26 that he wants to introduce a flat tax rate of 20 per cent, for both income tax and VAT. This could be introduced at the same time as higher tax allowances to ensure that those at the lower end of the pay scale (currently paying 10 per cent) do not pay more.
The minister says he thinks the move would boost the economy and remove barriers to employment.
"It would encourage faster [economic] growth, attract more investment, and create more job opportunities. In analyses comparing 85 countries - some with flat-rate tax and some without - economic growth is twice as fast in those countries with flat-rate tax," explained Mikloš.
The government has yet to discuss the proposal.
Compiled by Conrad Toft from press reports.
The Slovak Spectator cannot vouch for the accuracy of the information presented in its Flash News postings.
27. Mar 2003 at 10:20