Financial transaction tax caused a 20% drop in inter-company transactions

The introduction of the financial transaction tax last year caused a 20% drop in inter-company transactions in Slovakia's payment system, according to fiscal responsibility council RRZ data. Businesses adapted quickly to the new tax, which sets a maximum charge per transaction and thereby incentivizes firms to reduce the number of payments — through consolidating multiple payments or offsetting mutual receivables. This is one reason the tax has yielded less revenue than expected.

(trend.sk)