Major changes to the tax collection system are planned in Slovakia by 2025, according to a proposal to consolidate public finances presented today, 17 September, by Prime Minister Robert Fico and members of his government.
Starting next year, the value-added tax (VAT) will rise to 23% and VAT on food products will be 19%. In addition to the changes in VAT rates, a special tax will be increased for energy companies. They will thus pay an additional 156 million euros. In total, the Ministry of Finance has prepared 17 measures that will bring in 2.7 billion euros to the treasury next year.
“This is necessary because we are part of the eurozone and must be subject to the rules of the common monetary union. The solution is socially sustainable because we have found a balance. The changes will affect not only individuals, but also businesses and banks. Everyone has to contribute.” – said Fico.
The government is also counting on a special levy for oil refineries of 36 million euros. Mobile operators will also pay more, contributing an additional 25 million euros to the budget. The coalition also agreed to increase corporate taxes for large companies. The rate of this tax will be increased by one percentage point for companies whose tax exceeds 5 million euros. In addition, the changes will also affect employees. In particular, highly paid employees. From next year, the maximum limit for social security contributions will increase for monthly earnings of more than 11,000 euros per month.
At the same time, VAT on medical products and medicines will be reduced from 10% to 5%. For electricity, this type of tax will also be reduced from 20% to 19%. The income tax rate for small businesses will also be reduced. For those whose income does not exceed 100,000 euros, the tax will be reduced from the current 15% to 10%, and income tax from 10% to 7%.
The coalition also agreed to introduce a new tax on financial transactions, which would apply only to companies and entrepreneurs. Thanks to this, the state should receive 610 million euros. In addition, taxes and fees in the field of road transport are being increased.
