Spectator on facebook

Spectator on facebook

IN SHORT BUSINESS

Finance Ministry rejects German criticism

SLOVAKIA's Finance Ministry objected to statements by German Chancellor Gerhard Schröder that were critical of central and eastern European countries for reducing corporate tax levels.

"The question of direct taxes is fully under the authority of individual EU member countries... and the Slovak tax reform has strictly observed all EU directives," Peter Papanek, spokesman for the ministry, told the news wire TASR.

"Both the flat tax and the tax reform are fully compliant with agreements on dual taxation, other international agreements, and the Slovak constitution," he added.

In his criticism, Schröder said that the average corporate tax in central and eastern European countries was below 20 percent, while in the EU it exceeded 30 percent.

"In our countries we have tougher competition as regards both corporate expenditures and labour opportunities. Such policies do not allow them [central and eastern European countries] to finance their infrastructure projects from their own sources, which leads to co-financing from Brussels. Thus, at the end of the day, problems have to be shouldered by EU members, which we just cannot abide," he added.

According to Papanek, the best way to catch up with the current members is to create an appropriate business environment and attract new investment.

"Therefore we have prepared a tax reform to move the weight from direct to indirect taxes," he added.

Top stories

Robert Fico has lost the electoral magic he once had Plus

But his party can still bounce back if they do the things that make parties resilient.

Robert Fico claims that Smer won the regional elections because it is the party with the most chairs in regional councils.

New legislation protects creditors from unfair mergers

Fraudulent mergers were a legal business model enabling unfair businesses to get rid of debts

Tightening conditions when merging companies will increase the red tape of lawful mergers and prolong this procedure.

Fifty Shades of Grey: Slovakia's Olympic outfits will not stray from tradition Photo

The official outfit for Slovak athletes at the Pyongyang Olympic Games has been presented; the Slovak Olympic Committee (SOV) is not satisfied.

Olympic outfit of Slovak athletes

Blog: How long until a robot takes your job?

Are robots really taking over? What are the benefits and what are the risks?

Illustrative stock photo