Taxpayers in the quickly growing former communist state say rates are too high, but the Government complains that too many people and firms pay too little tax
Published:
16 November 2003 y., Sunday
When Michal, a 30-year-old financial manager at a large firm in Slovakia, set up a cultural foundation two years ago, he did not do it for the arts. He wanted to avoid paying tax.
Like tens of thousands of Slovaks the Government suspects of dodging their obligations, Michal went to great lengths to avoid paying the top tax rate of 38 per cent.
Taxpayers in the quickly growing former communist state say rates are too high, but the Government complains that too many people and firms pay too little tax, leaving it struggling to finance schools, roads and other projects and services.
That may soon be history because laws pushed through Parliament last month will introduce a flat 19 per cent income, corporate and value-added tax rate in January.
The Government hopes the new system will ease collection, stop rampant evasion and boost economic growth ahead of Slovakia's entry to the EU in May.
With a complex system that is strong on loopholes and weak on enforcement, Slovakia's 5.4 million people joke that avoiding and evading taxes is a national sport.
Leaders hope the reforms will replicate Russia's experience, where the Government set a flat rate of 13 per cent and watched revenue soar almost 40 per cent from 2000 to last year.
Šaltinis:
nzherald.co.nz
Copying, publishing, announcing any information from the News.lt portal without written permission of News.lt editorial office is prohibited.
The most popular articles
According to the data presented by the Ministry of Finance, in end-January central government debt made up LTL26, 310.8 million or 28% of projected GDP for 2010 (LTL 93, 819 million).
more »
As far as countries affected by the economic crisis, China fared extremely well.
more »
The European Commission has authorised today a Slovak scheme with a budget of approximately €3.32 million which aims at supporting farmers in Slovakia who encounter difficulties as a result of the current economic crisis.
more »
Commission sets out a 10-year strategy for reviving the European economy, casting a vision of ‘smart, sustainable, inclusive' growth rooted in greater coordination of national and European policy.
more »
The European Commission has launched today the Europe 2020 Strategy to go out of the crisis and prepare EU economy for the next decade. The Commission identifies three key drivers for growth, to be implemented through concrete actions at EU and national levels.
more »
Launching of the “SCHOOLS’ initiative for innovation and changes” Grant scheme.
more »
EU Member States must not only deliver on their international aid pledges, but also bring in a financial transactions tax and a temporary debt moratorium, to help developing countries to cope with the effects of the global financial and economic crisis, said the Development Committee on Monday.
more »
The EBRD is increasing its commitments to promote sustainable energy projects in Slovakia with a new €90 million funding under the existing Slovakia Sustainable Energy Finance Facility (SLOVSEFF) to ensure continuous implementation of energy efficiency and small renewable energy projects.
more »
According to the unaudited data, in 2009 AB Bank SNORAS earned LTL 8.7 million profit. The bank’s assets grew by 11 per cent up to LTL 6.342 billion during 2009 and were by LTL 647.8 million larger than at the beginning of 2009.
more »
Aviation security measures that go beyond common EU requirements should be paid for by Member States, not by passengers, said Transport Committee MEPs in a vote on Monday that could put Parliament on a collision course with the Council of Ministers.
more »