Coalition parties intend to ruin public finances

An increase in the basic income tax deductible and cut in payroll levies, proposed by the coalition party Most-Híd, would cause a revenue shortfall of over €500m annually, according to the fiscal responsibility council RRZ. Of this, about two thirds would be in the form of lower revenues for municipalities and the rest lower revenues for social insurer SP. Another coalition party SNS has proposed cutting the corporate income tax rate from 21% to 15% and the VAT on food to 10%; these would cost the state €1.4bn annually. Smer will propose an increase in pensions and social benefits.

The coalition is discussing the proposals and it remains to be seen what will be implemented in January 2020.

(sme.sk)