BRATISLAVA, April 9, (WEBNOVINY) – Prime Minister Iveta Radicova said on air of the Slovak Radio that the tax and payroll levy reform is to bolster employment. Only some self-proprietors will be negatively affected, particularly those with higher income but little real expenses. Such individuals will pay more in taxes and social and health insurance premiums, Radicova admitted. First and foremost, the reform is meant to simplify administrative tasks and reduce the overall premium burden. High payroll levies hamper the employment growth by increasing labor costs. All individuals with low income, whether employees or self-proprietors, will benefit from the planned changes, she assured in Saturday’s Dialogues program. The prime minister does not think that most self-proprietors abuse the system. It is a fact in Slovakia that regions with high jobless rate report more self-proprietors, which means that these people create jobs for themselves, she explained.
Radicova stated that the launch of tax reform clashed with harsh criticism but in reality the changes have brought about positive results. The reform still is in a public debate and her team is open to any impulses, the prime minister commented. If coalition partners that have raised objections to the reform come up with solutions to improve the system, they won’t be rejected. OKS, sitting in the parliament as MOST-HID deputies, has presented the most objections.
The reform is part of further austerity measures introduced by the Cabinet. They also cover spending cuts at all ministries and savings in the health sector. Radicova does not expect the cuts to afflict the most vulnerable groups as such families with small children, severely disabled persons and others.
The prime minister assured on Saturday that Slovakia will not give the go-ahead to the bailout loan for Portugal unless the debt-ridden country consolidates its public funds, introduces budget measures and reduces spending. Without all these steps, the assistance would just preserve the current condition. Radicova noted that Slovakia would not provide cash but guarantees.
SITA
