BRATISLAVA, December 21, (WEBNOVINY) — On Tuesday afternoon, lawmakers convened for the last time this year at an unscheduled parliamentary session due to the presidential veto of the revision to the income tax act. The deputies successfully overrode the veto of President Ivan Gasparovic and approved the revision to the income tax act as originally proposed. The president suggested that the parliament approve the draft with changes, and demanded that the new tax on holding and sale of emission allowances (AAU) be omitted from the norm. The deputies, however, did not support the suggestions of the head of the state. Of the 79 deputies present, 77 supported the draft, introducing a new tax on income from sold AAUs. Two deputies, namely Anna Belousovova and Rudolf Pucik for the opposition SNS party refrained from vote.
The draft revision to the income tax act is a part of the consolidation package of the government of Iveta Radicova, which aims at reducing the public funds’ deficit from this year’s nearly eight percent to 4.9 percent of the gross domestic product next year.
The president returned the draft to the parliament at the end of last week. In it, the Ministry of Finance of the Slovak Republic had cancelled several exemptions in income taxation, which should, according to Finance Minister Ivan Miklos, help stabilize the disrupted general government finances and improve the tax system. It was suggested that the new rules take effect as of the beginning of 2011. The revision also introduces a new tax on the sale and possession of emission allowances (AAU).
The president demanded that the tax on AAUs be omitted from this norm. The taxation of emission limits is a new tax and its legal regulation in the income tax law revision is new, as well. “In my opinion, introduction of this tax requires a thorough justification,” stated the press release of the presidential office. The amending proposal submitted by governing coalition MPs Jozef Kollar, Anton Marcincin, Ondrej Matej and Ivan Svejna that aimed to introduce the taxation of emission quotas, lacks such explanation, argued the president, who suggested that the revision come into force effective as of March 1, 2011 after legislators greenlight it again.
Minister of Finance Ivan Miklos claims that the state should obtain additional sources, which would at least partly cover the loss caused by the previous government of Robert Fico, by additional taxation of proceeds from the sale of emission allowances. Miklos opines that the previous government did not act in accordance with public interest but in the interest of companies when assigning them emission allowances.
SITA