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Sme daily: Government again puts the brakes on incentives for companies

For the second time, Economy Minister Tomáš Malatinský is withdrawing his proposals for tax relief worth over €100 million requested by several companies. His cabinet colleagues still do not support subsidising companies that will not create new jobs, but only retain existing ones, the Sme daily wrote in its Wednesday, October 3, issue.

For the second time, Economy Minister Tomáš Malatinský is withdrawing his proposals for tax relief worth over €100 million requested by several companies. His cabinet colleagues still do not support subsidising companies that will not create new jobs, but only retain existing ones, the Sme daily wrote in its Wednesday, October 3, issue.

The stimulus was intended to go to Samsung Slovakia and SCP Mondi, Sme specified, adding that it is not clear whether the companies will keep the already existing jobs. For example, SCP Mondi will be allowed to lay off the same number of people as planned if it does not receive the stimulus. SCP Mondi, however, promises to hire new employees with the stimulus. Slovak Democratic and Christian Union (SDKÚ) MP Miroslav Beblavý says that what matters is a contractual obligation. If Mondi is not doing well, it can lay off as many as 400 people - and still take the tax relief, Beblavý alleges.

Sme also writes that according to the Government Office, ministries of economy and finance are still fine-tuning the specific proposals, and still on Friday, Labour Minister Ján Richter and Environment Minister Peter Žiga had reservations about the state aid given the fact that it would go to companies who have promised simply to keep existing jobs, rather than create new ones. The Economy Ministry explained that the SCP Mondi stimulus is bound to a specific investment – the construction of a new boiler. The final decision on the tax relief has been withdrawn from Wednesday’s government agenda and will be postponed to a later date.

(Source: Sme)
Compiled by Zuzana Vilikovská from press reports
The Slovak Spectator cannot vouch for the accuracy of the information presented in its Flash News postings.

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