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
An International Monetary Fund (IMF) mission led by Mr. Hunter Monroe of the IMF’s Western Hemisphere Department visited Dominica during January 18-28 for the annual Article IV discussions on economic developments and macroeconomic policies.
more »
Experts in agriculture and government authorities coincided in requesting new management mechanisms and market regulation to protect the farming sector from the price crisis and enable generational changeover in rural areas at the European Congress of Young Farmers, organised by the ASAJA-Seville agricultural organisation.
more »
Immediate action is required to solve Europe's skills deficiencies and give Europeans a better chance of labour market success in the future, says an independent expert report published by the European Commission today.
more »
The European Investment Bank (EIB) is lending EUR 15.5 million to upgrade water supply and wastewater treatment in the City of Mykolayiv (southern Ukraine) and EUR 100 million to finance small and medium-sized investments in the areas of SMEs, energy efficiency and the environment in Ukraine.
more »
The European Commission can confirm that on 20 January 2010 Commission officials carried out targeted inspections at the premises of producers of Flexible Alternating Current Transmission Systems (FACTS).
more »
The European Commission has authorised today under the State aid rules a Lithuanian scheme worth LTL 10 million (approximately EUR 2.9 million) aimed at supporting farmers who encounter difficulties as a result of the current economic crisis.
more »
The effects of the global food, fuel and economic crisis would be felt by Africa’s people for some time yet and it was important to persist with efforts to protect the most vulnerable while laying the foundations for future productivity and growth, World Bank Group President Robert B. Zoellick said Tuesday.
more »
Mongolia’s herders have learnt a hard lesson this winter; a lesson that can perhaps be applied to managing Mongolia’s economy.
more »
DnB NORD Bankas, the leader of the country’s in investment products market, raises initial margin ratio for repurchase deals for most actively traded Lithuanian and Estionian shares.
more »
With over 23 million unemployed in the Europe Union and the jobless figure having risen in every member state since last year, how Europe is coping with the crisis and the effect on pension systems were discussed on Thursday 28 January.
more »