Spectator on facebook

Spectator on facebook

Companies bear an aggregate regulatory burden of €12 billion annually

Employers complain about rising regulatory and administrative burden

Observing frequent changes in legislation is no simple matter.(Source: SME)

The long-term costs of the regulatory and administrative burden are significant barriers to business development in Slovakia, according to analysis performed by the National Association of Employers (RÚZ). On October 2, they introduced their study of the development of the regulatory burden in Slovakia due to selected important laws influencing the business environment.

The analysis showed that the biggest obstacles are the burdens of taxes and levies on businesses and a number of registration and administrative obligations, which are often duplicated.

“Slovakia finally needs to start adopting a package to support the business environment,” said Luboš Sirota, vice-president of the RÚZ at Monday’s news conference. The number of regulatory obligations for businesses is growing steadily. In the 10 laws analyzed, there was an increase from 1,514 obligations in 2007 to 1,719 obligations in 2016.

“In terms of finances, all this for entrepreneurs in Slovakia means that they carry the total regulatory burden of more than €12 billion per year,” said Sirota as cited by the SITA newswire.

The employers consider the persisting instability of the legislative environment to be a chronic problem.

“Between 2007 and 2016, the Trades Act was amended most frequently, 54 times in total, and the Income Tax Act 53 times,” reads the analysis.

The Labour Code was amended on average two to three times a year over the same period. Employers complain that the average pace of these legislative changes is hectic.

“It is absolutely unreasonable to change the Trades Act 12 times in a single year,” Sirota said.

Top stories

Kažimír: We are in the finals in the fight for a fifth carmaker

As for the rumour of a fifth carmaker coming to Slovakia, the finance minister hints that it is a brand locals already know.

One of three existing Slovak carmakers...

Slovaks die of cancer more often than other EU citizens

The survival rate after diagnosing breast, cervical and colon cancer has not improved.

The National Oncology Institute, stock photo.

Slovak ice-hockey team is heading to Košice

The Slovak team is slated to play in Košice, and not Bratislava, at next year’s Ice-hockey World Championship.

Slovak Ice-hockey Association head, Martin Kohút

The Financial Administration will use crypto-currency technology

Slovak tax office has implemented a blockchain.

František Imrecze, head of the Financial Administration