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Parliament Declines to Re-Valorise Non-Taxable Portion of Tax Base
Tuesday 08 December 2009 Zoom in | Print page
Bratislava, December 8 (TASR) - The Parliament rejected on Tuesday a proposal to re-valorise the non-taxable portion of the tax base, as submitted by the Opposition SDKU-DS party. "Hence, by declining the proposal, the Government has confirmed its intent to raise taxes," said author of the proposal Ivan Stefanec (SDKU-DS).
At its previous session, the Parliament passed the Finance Ministry's Income Tax Act amendment that the non-taxable portion of the tax base won't increase in 2010, but stay frozen at the current level of €4,025.70 per year. The tax deductible minimum is defined as 22.5 times the subsistence level and increases each year based on this parameter. The subsistence level has increased since July 2009 to €185.19 per month, meaning that the non-taxable portion of the tax base would have increased to €4166.78 as of 2010 if the Government's amendment hadn't been passed.
Parliament passed the Income Tax Act amendment in October, however, meaning that the tax deductible minimum will be calculated according to a subsistence level of €178.92 per month, valid on January 1, 2009.
This change was championed by Finance Minister Jan Pociatek (Smer-SD) in order to address the financial problems of local governments in the wake of the global economic crisis and new changes in legislation.
Stefanec said that he agrees that the local governments face financial problems stemming from lower tax incomes, however, these problems shouldn't be resolved by additional tax increases.
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