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SDKU to Promote Raising of Non-Taxable Portion of Tax Base
Friday 27 November 2009 Zoom in | Print page
Bratislava, November 27 (TASR) - The opposition SDKU-DS party will submit a proposal to re-valorise the non-taxable portion of the tax base and reverse the Finance Ministry's decision to freeze it, said SDKU MP Ivan Stefanec at a press conference on Friday.
The party maintains the view that Slovakia can improve the current unfavourable situation by other means than raising taxes.
"We've always refused to raise taxes and we regret to see the Government squandering resources and putting Slovakia in debt. People will ultimately pay for this with €33 million in 2010," said Stefanec.
SDKU will propose increasing the non-taxable portion based on the current level of the subsistence, which has increased year-on-year. "It means that every citizen, if the proposal passes, will pay €26.80 less per year on taxes," claimed Stefanec, who also expressed his conviction that the other opposition parties will support the move.
Based on an Income Tax Act amendment drawn up by the Finance Ministry and signed by Slovak President Ivan Gasparovic, the non-taxable portion of the tax base will not increase in 2010, but stay 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 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.
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