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Fico: Tax Growth No Issue, Slovakia Relies on Economic Growth
Tuesday 29 December 2009 Zoom in | Print page
Bratislava, December 29 (TASR) - Tax increases or the introduction of progressive income taxes aren't issues for the near future, TASR was told by Prime Minister Robert Fico in an interview on Tuesday.
Fico said that the Government relies on economic growth, and that with good economic growth and sensible management the country is able to exist even with comparatively low taxes.
As for progressive income taxes, Fico said that it's natural for his Smer-SD party to talk about such a system and its solidarity, but he doesn't want to interfere in the recently introduced tax system and therefore the 19-percent flat-tax will remain untouched for legal entities. A certain element of solidarity and progressiveness has been introduced via several adjustments in the case of private individuals, however, said Fico.
The premier expressed surprise at how nervous some high-earners are about this topic, and how some people from the banking and financial sectors were interested in whether or not taxes will be raised. Fico said that they should look to France, Great Britain and other countries where a 40-percent tax is quite normal, but his Government is more interested in economic growth and that's what it's focused on.
The prime minister added that the range of products and services on which a lowered 10-percent VAT is applicable could be extended in the future.
As for lower payments to the state, he said that such an idea is attractive but not realistic in the present situation, as the social and healthcare systems must have some resources to exist on. "Generally, I don't think that we've made any decision that would harm people or the business sector. We haven't made any decision that would burden people with new payments, new taxes. Nothing like this has happened and as long as we are in Government nothing like this will," said Fico.
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