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Changes in tax law needed

PARLIAMENT may be forced to make changes to the recently approved tax law, which introduces a flat 19 percent tax in the country as of January next year.

The change will probably come as a result of a clause in the law that foresees a tax on revenues from the capitalization pillar of the new pension system, a voluntary scheme that would enable employed Slovaks to save additional money for their retirement pensions in private funds as of 2005.

Observers warned that putting a tax on the savings would discourage people from entering the capitalization pillar. The Labour Ministry said it wanted to agree on a change in the tax law with the Finance Ministry.

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