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People with tradesman licenses are fading away

The number of self-employed people in Slovakia fell by 5,500 during the first two months of 2013. Their numbers shrank more considerably in December 2012 when some 7,000 returned their license, according to the data of the Interior Ministry, as presented by the Sme daily on April 8.

The number of self-employed people in Slovakia fell by 5,500 during the first two months of 2013. Their numbers shrank more considerably in December 2012 when some 7,000 returned their license, according to the data of the Interior Ministry, as presented by the Sme daily on April 8.

“There are two possible reasons: the bad economic situation and the steps of the government that put sole proprietors at a disadvantage,” said Slovak Democratic and Christian Union (SDKÚ) MP Miroslav Beblavý, as quoted by Sme. He referred to changes for the self-employed, which increased their payments for taxes and payroll taxes that came into force in January 2013.

Luboš Sirota from the McRoy Group recruitment agency says that the bad economic situation influenced a drop in people’s purchasing power, which is reflected in the low number of orders for the sole proprietors.

Representatives of the self-employed have a similar view, stressing that they have to deal with a lack of work. Since they have to pay the minimum payroll taxes at €200 a month even though they earn nothing, most of them would rather set up a limited liability company or sign an ordinary working agreement, head of the Slovenský Živnostenský Zväz, an association representing self-employed trade and craft workers, Stanislav Čižmárik told Sme.

Yet, the Labour Ministry is satisfied as it hopes that higher levies will force people who abused the license to evade levies to quit, Sme wrote.

Source: Sme

Compiled by Radka Minarechová from press reports

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