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Miklos: Abolition of Unjustified Tax Exemptions to Save €440 mn in 2011
Monday 16 August 2010 Zoom in | Print page
Bratislava, August 16 (TASR) - The ministers of finance (Ivan Miklos/SDKU-DS), labour (Jozef Mihal/SaS) and health (Ivan Uhliarik/KDH) have jointly prepared changes in the tax and deduction system that would do away with unsubstantiated exemptions and deformations and would bring more money into state coffers, Miklos announced at a press conference on Monday.
According to the finance minister, the state budget could gain €440 million next year, with prospects of increasing this figure to €560 million and €635 million in the next two years after that.
"We propose cancelling tax-exempt parts of the tax base for special-purpose savings, life insurance and additional pension savings," said Miklos.
The tax-exempt part of the tax basis will therefore remain in place only for so-called active incomes, which would make incomes from work more advantageous than those coming from capital.
Another measure aims to unify lump-sum allowances at a united level of 30 percent in place of the three current levels of 25 percent, 40 percent and 60 percent.
Miklos noted that higher taxation will also affect constitutional officials, who will also see their lump-sum allowances taxed. For the time being, the upcoming legislation draft won't apply to MPs, who should themselves propose measures aimed at taxing their incomes in line with an inner-coalition agreement.
"Furthermore, we propose taxing bonuses on incomes from dependent activities that aren't currently being taxed. This applies to judges, assessors, prosecutors and legal claimants of prosecutor's offices," added Miklos.
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