Tax hikes to fund pensions and social benefits
The government approved a number of measures to cut the public finance deficit by €2bn in 2024. It will raise €357m by increasing health levies for companies and sole traders by one point. Interestingly, analysts and international institutions have long recommended that Slovakia cut labor taxes. Payments to the second pension pillar will be cut from the current 5.5% of gross wages to 4% (€365m). A new bank levy, totaling 30% of gross profits, is to bring in €335m. The levy is to be gradually reduced to 15% in 2027. A special tax on Slovnaft is to continue, with next year's revenue planned at €180m. Companies will again pay a minimum tax of €340-3,840 a year depending on turnover (€102m). Companies with annual revenues over €750m will pay the so-called equalization tax; the tax with a rate of 15% is to bring in €49m. Dividend tax will go from 7% to 10% (€5m). The government will abolish tax exemptions for cryptocurrencies as well as family building savings; both measures were approved by the previous parliament and have not yet come into effect. Cigarette tax will rise by €106m next year and alcohol tax by €18m. VAT on alcohol served in restaurants will rise from 10% to 20% (€38m). The government will abolish the public holiday on September 1 and claims that this will increase budget revenues by €130m. The public broadcaster RTVS will receive €54m less, getting only 0.12% of GDP instead of 0.17%; it will be allowed to air more ads to compensate for the shortfall. Court and administrative fees will increase. Each ministry is to cut spending by 5%.
The parental pension will be paid in one payment in June next year. Pensioners will then receive their 13th pension in December. The government won’t change the family package approved by the previous government.
