Personal income tax to be localised

REGIONAL and municipal governments should obtain all the revenue from the collection of personal income taxes, according to the fiscal decentralisation plan presented by Finance Minister Ivan Mikloš.

Of the total collected income tax, 70.9 percent should go to towns and villages and 27 percent should be allocated to regional governments. The remaining 2.1 percent will be in reserve, the news wire SITA wrote.

Regional and municipal governments will be free to set their local taxes from 2005. The cabinet will deal with the proposal in May and the parliament should discuss the bill in June.

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