Government approves changes in taxes

Slovakia’s government has approved the second big package of measures which will contribute to an increase in taxes for individuals as well as companies. Thanks to the new taxes the revenue for the state budget might increase by an additional €468.9 million next year, the TASR newswire reported.

Slovakia’s government has approved the second big package of measures which will contribute to an increase in taxes for individuals as well as companies. Thanks to the new taxes the revenue for the state budget might increase by an additional €468.9 million next year, the TASR newswire reported.

According to the initiative, which is now up for debate in Parliament, corporate tax is to be raised in blanket fashion from 19 to 23 percent. Meanwhile, individuals earning more than €3,246 per month will see their income-tax rate go up from 19 to 25 percent, the TASR newswire wrote.

A special, extra 5-percent income-tax rate will apply to selected constitutional officials such as MPs, government members and the president. Moreover, a cap on 40-percent, lump-sum, tax-deductible expenditures is also to be introduced, with the upper limit projected to stand at €5,040 per year, or €420 per month.

The Finance Ministry expects that the changes will increase state revenue by €519.9 million in 2014 and €551.9 million in 2015, TASR wrote.

Yet, analysts criticise the measures.

“It is a sign of incapability of the government to decrease expenditures,” said Radovan Ďurana, analyst with INESS think tank, as quoted by the Sme daily.

Source: TASR, Sme

Compiled by Radka Minarechová from press reports

The Slovak Spectator cannot vouch for the accuracy of the information presented in its Flash News postings.

Get daily Slovak news directly to your inbox

Top stories

Investors pursued projects and transactions despite the virus

Investors pursued projects and transactions despite the virus. Check out the 2020 investment highlights from Slovakia.

The visualisation of new Istropolis building

Better times ahead for the Calvary in Bratislava

The last preserved station was restored this summer.

The last preserved station of the Stations of the Cross in Bratislava

Why you need to buy a belt

On this Black Friday, with society teetering on the brink of chaos, I ask that we all do our part.