Changes planned by the Government to the system of tax and payroll tax deductions will increase companies' costs by 7.8 percent on average, the Slovak Business Alliance (PAS) announced on Thursday, June 7. According to a survey carried out by PAS among 125 Slovak companies, the proposed measures may result in staff reductions of up to 4.9 percent and cuts in investment of 25.4 percent.
"The measures indicated by the Government will cause a deterioration in the competitiveness of Slovak companies," the survey concludes, as quoted by the TASR newswire. The increase in corporate taxes was viewed as the most unfavourable step by half of respondents. Increased income taxes for high earners will boost salary expenditures and will also have a devastating impact on companies' competitiveness, 49 percent of the respondents claimed. Four in ten businessmen are concerned about the effects of the banking levy, which they believe may result in more expensive loans. PAS is recommending that the government re-think its plans in the tax-levy sphere.
"Instead of the tax increases, PAS emphasises especially the need to slash inefficient public expenditures, promote fairness in levies, improve tax collection and clamp down on tax evasion, reform the first pillar of the pension system, and improve transparency in the health-care system and public procurement," read a PAS press release.
Compiled by Zuzana Vilikovská from press reports
The Slovak Spectator cannot vouch for the accuracy of the information presented in its Flash News postings.
8. Jun 2012 at 10:00