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Cabinet approves tax shake-up

THE MUCH-DEBATED changes to Slovakia’s system of taxes and mandatory payroll levies were approved by the coalition cabinet at its session on May 18.

THE MUCH-DEBATED changes to Slovakia’s system of taxes and mandatory payroll levies were approved by the coalition cabinet at its session on May 18.

The measures include a so-called super-gross salary and reduction in payroll levies for social insurance and health insurance for some employees. The tax-exempt base is also proposed to be reduced from 19.2 times the minimum subsistence level to 18 times. In monetary terms, this means the tax-free base would be €200 less in 2012.

The mandatory health-care levy is proposed at 9 percent, except for the disabled who would pay half the rate. The proposed social insurance levy is 19 percent for employees, 13 percent for self-employed persons and 10 percent for people working via work contracts, the TASR newswire wrote.

A total of 99.5 percent of employees are expected to be better-off due to the changes. However, the changes will take more from self-employed people who earn more than €4,823 per year; their number is projected to be 180,400.

The Civic Conservative Party (OKS), whose four MPs sit in the parliamentary caucus of Most-Híd, is not in total agreement with some provisions of the proposal and. It says it is ready to challenge the new rules in parliament.


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