Transaction Tax: Changes have gone to the second reading

BRATISLAVA. Transaction tax As of October this year, sole traders or small companies with a turnover of up to EUR 100,000 should not be paid.

The draft amendment to the Tax Act on Financial Transactions submitted by a group of coalition deputies SNSMEPs have moved to the second reading.

He received support from 146 out of 147 legislators present.

There was a coalition match

The CIS’s proposal was supported by the opposition for a long time, there was no coalition in the coalition.

Coalition parties DirectionThe voice and the CIS eventually informed on Monday that they agreed to support the proposal to narrow the scope of the transaction tax.

The related loss of state budget revenue is planned to be addressed that the public holiday of 17 November will not be a day of public holiday in the future.

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« The aim of the bill is to amend the scope of entities that are taxpayers under the Tax Tax Act on the grounds of needing to ensure a fairer, more economical and administrative more excessive application of this tax, » the petitioners explained.

They pointed out that the taxation of financial transactions is currently also related to the smallest entrepreneurs who are often the only employees and administrators of their own agenda.

« For this group of entities, the introduction of a transaction tax means not only additional financial costs, but also a significant administrative burden associated with the management of the transaction account, tax levies and documentary obligations.

According to them, the proposed legislation responds to the practical experience of the application of the law, as well as to the repeated comments of the business public concerning the disproportionate burden of small entities.

The amendment also contains a mechanism of verifying the fulfillment of the amount of income through the submission of documents, including a copy of the income tax return. In order to ensure the functionality of the system, it also regulates the procedure in the event of non -giving documents and the consequences in the form of automatic inclusion in the position of the taxpayer.

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The petitioners admitted that their proposal has a negative impact on the budget. The loss of income after approval of changes is estimated in the range of EUR 35 to 50 million per year. « Taking into account that the total annual revenue from financial transactions in terms of full efficiency will exceed several hundred million euros, it is a fiscal marginal intervention, » they said.

The Ministry of Finance has not disagreed with the proposal of the amendment in the past. According to the department, it has serious technical and legislative shortcomings. This year, the tax income loss estimates EUR 44 million and at EUR 175 million next year.

The opposition wants to cancel the tax as a whole

The opposition supported the shift of the proposal to the second reading. However, it is still in favor of this tax as a whole.

“Robert Fico (Direction) and Ladislav Kamenický (Direction) make us normally fun. Their introduction of transaction tax was nothing but an attempt-hasl on five million citizens. Just a few days ago, they claimed that this tax was incruible and that people would not touch. Meanwhile, prices have risen, dismissed and investors are leaving, ”said the chairman SaS Branislav Gröhling.

When the government, according to the opposition, found that 75 percent of people are in Slovakia for cancellation of transaction tax, it agreed to move the proposal Andreja Danko (SNS) for the liberation of sole traders and small companies with a turnover of up to EUR 100,000 for the second reading.

Opposition MP Július Jakab (Slovakia, For peopleKE) recalled that the government wants to withdraw EUR 700 million per year from the transaction tax. A failure due to the exemption of sole traders and small companies from this tax could be found, for example, withdrawing money from Slovnaft on the processing of cheap Russian oil, which would receive EUR 500 million.

Furthermore, this could be a cancellation of double salaries of ministers, a lifetime annuity of the Prime Minister or the Ministry of Tourism and sports. In the event of a half or third of employees in public administration, the state would receive one to two billion euros.

According to Jakab, Danko did not solve anything by agreement by the agreement of the coalition parties, on the contrary, by abolishing the transactional tax for traders and small companies, he moved the entire burden to the inhabitants of Slovakia who will have to go to work in the event of cancellation of November 17 as a holiday holiday. The annulment of this holiday was announced by coalition parties on Monday (2 6th), and the state budget could bring the measure of EUR 100 to 130 million.

Both opposition parties agreed that instead of this holiday could be canceled on May 1. The SaS also proposed the abolition of one ecclesiastical holiday, on 6 January.

The cancellation of November 17, as a public holiday, is a compensatory measure that was a bad decision from the government, as the symbolism of the struggle for freedom and democracy is still important for Slovakia.