BRATISLAVA, April 27, (WEBNOVINY) — Higher taxation of highly profitable companies and high earning individuals, as well as potential increased revenue from property taxes are some of the plans of the new government of Prime Minister Robert Fico contained in its program statement that the Cabinet approved on Friday. These measures are also included in the National Program of Reforms that outline how the government wants consolidate public finances. According to its program statement, the government rejects higher taxation of consumption as the sole source of increasing public revenue to achieve the goal of deficit reduction. „Emphasis will be placed on taxes that least reduce the disposable income of low-income citizens, economic activity, or are relatively low compared to other countries,“ the document states in reference to taxation.
For example, the government in its policy statement says it wants to increase progressiveness of the tax system for high income earners among natural persons and legal entities. It is also considering increasing revenue from property taxes. „The government will take steps toward a more a more balanced tax-levy burden on capital and labor,“ the document reads. With respect to experience of neighboring countries [probably Hungary – SITA note] , the government will consider introducing a tax on financial transactions.
The government included among its goals to complete the reform of the tax administration through the UNITAS project. Its goal is unification of collection of taxes, customs duties, and payroll levies. At the same time, the government wants to focus on combating tax evasion which „will provide for additional budgetary resources“.
The program of fight against tax fraud in the government manifesto pledges to be „uncompromising, conceptual, and systematic.“ The government plans to draw up an action plan to combat tax fraud. It should include a detailed timetable for the implementation of measures and incentives for public participation in this process. „Objective of these measures will be to comprehensively combat tax fraud, customs fraud, including the direct and indirect taxes through effective legislative support, but also a series of instruments of operational nature,“ the document reads.
The government also wants adopt measures to prevent fraudulent activities in dissolution of companies. „Accountability will increase of people who are statutory representatives at the time preceding termination of a company. The government will explore possibilities to create legislative and institutional conditions for interconnection of commercial, tax, and criminal codes,“ reads the document. The government also wants to explore the effectiveness of current legislation, the Criminal Code and Criminal Order and to analyze the possibility of introducing new tax offenses into them.
SITA
