* Prime Minister Robert Fico sees no higher taxes
* Personal, corporate income tax steady at 19 percent
* In response to world crisis May hike top-end health, social security contributions by a small amount.
Slovakia will not hike taxes if the leftist SMER party forms the next government after a June general election, Prime Minister Robert Fico said on Friday, adding such a step would hurt the business environment.
The euro zone member state introduced a flat 19 percent tax rate in 2004 to overhaul its complex tax system, and the tax reform has helped bring higher budget revenues in recent years.
"We do not plan to increase taxes, none of us wants to hike taxes for corporates," Fico told a meeting of the Employers' Association (RUZ). He added the personal income tax will remain untouched as well.
Thanks to wide-ranging market reforms, Slovakia became a magnet for foreign direct investment worth billions of euros, mainly into the car and electronics sectors, which helped to boost the economy to among the European Union's fastest-growing before the economic crisis crushed foreign demand.
Fico, a tireless campaigner with a strong chance to form the next cabinet with one of its current coalition partners or with one of the opposition factions, dismissed employers' call to cut health and social security taxes.
"We will not lower health and social security contributions, there's no economic room for this," Fico said.
Fico said he was considering higher health and social security contributions for higher-income earners, as a measure which would help to boost budget revenues and back the planned fiscal consolidation.
Slovakia, using the euro zone currency since January 2009, has pledged to axe its fiscal deficit to the EU's official limit of 3 percent of gross domestic (GDP) by 2012, down from 6.8 percent in 2009.
The government aims to cut the gap to 5.5 percent of GDP this year.
Here are some pictures from the recent opening of a new square in Bratislava and sizeable new park and recreation area by the danube.
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Posts
Good evening Mr. PM,I'm Tibi from Romania & I don't believe your declaration:"You'll not hike taxes after ellections" from 12-13 June 2010.
ReplyDeleteYou should teach this thing to Romanian PM Emil Boc,who will make opposite thing.
When you will visit Romania,"Land of choice"?
Diky.
P.S.:Napoleon is my favourite hero,since I was born 2nd december,they day of the glorious battle of Austerlitz.
Today in Romania were held huge anti-govt. amifestations against Govt. policy to decrease wages with 25 % & pensions with 15 %.
ReplyDeleteNo comment,except Romanian PM should take lessons from PM Robert Fico.
Diky.
Good morning,why Slovakia doesn't need IMF help?
ReplyDeleteWhy Slovakia has happy citizens who are enjoying their lives?
Why Romania is going down with economy & Slovakia has joined euro zone,overpassed the crisis,although Slovakia & Romania are sister countries?
WHY,WHY,WHY,WHY,WHY????????
Dakujem.
i believe that there will be some fiscal consolidation after the election simply Slovakia will much less economic corrections to make.
ReplyDeleteGood motning Mr. PM,today it's 2nd day celebration WhitSunday,but in Romania many people working in public institutions are preparing for general strike in 31 May 2010.
ReplyDeleteI believe they are 2 options for Romania:either it will be a long strike,which will affect the whole economy (you can't split public & private sector),either Govt. will fall & President will nominate a new PM.
You should anyhow visit Romania "Land of Choice",how says our beautiful lady Tourism Minister.
Dakujem vam.