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Employers Want Deductions Down, Fico Says It's Unfeasible
Thursday 25 February 2010 Zoom in | Print page
Bratislava, February 25 (TASR) - The Association of Employers Unions (AZZZ) wants the deductions in Slovakia to be pressed down under 25 percent gradually within five years, which wouldn't have negative effects on the public finances and the country's indebtedness, AZZZ president Tomas Malatinsky said at a programme assembly of the association in Bratislava on Thursday.
The current amount of deductions overprices the work of a Slovak employee, which represents an entrepreneurial disadvantage compared to neighbouring countries," said Malatinsky.
According to Premier Robert Fico, who was also present at the session, this is "a legitimate view (of the employers) from their side of the river".
"Have you seen what neighbouring countries did to combat the crisis? They have raised taxes, they are increasing VAT," said Fico.
The premier emphasised that it isn't possible to combine the social-market economy system as in Slovakia with low deductions and taxes. "Let's make an agreement that no deductions will be paid, but then agree on having a state that doesn't carry out any of its functions," japed Fico.
Malatinsky believes that decreasing deductions would have a positive influence on the economy and, in effect, also boost employment and the entrepreneurial environment in Slovakia. "It could be compared to the euro introduction or the flat tax," stressed Malatinsky.
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