BRATISLAVA, September 21, (WEBNOVINY) — Representatives of employees associated in trade unions do not rule out that after the Cabinet’s package of economic measures to consolidate public finances is approved, they will proceed with protest actions. As the Vice President of the Trade Unions Confederation (KOZ) Vladimir Mojs stated after Tuesday tripartite meeting, the board of KOZ will discuss particular actions of trade unions on Wednesday. The trade unionists expressed their disapproval with increasing the value-added tax (VAT) as well as increasing the excise tax except tax on tobacco at a meeting of the representatives of the government and employers on Tuesday. Employers presented their comments to Cabinet’s measures as well and similarly to trade unionists they will try to promote them in further legislative process.
According to Mojs, the reason behind the trade unions’ discontent with the prepared changed in taxation of income or consumption is mainly in the negative impact these measures would have on the lowest-income groups of citizens. The trade unionists expect that increasing the base rate of VAT by one percentage point to twenty percent will raise prices for goods and services. President of trade union organization OZ KOVO Emil Machyna underscored that it is necessary to consolidate public finances but with a different burden imposed on citizens and businessmen.
The situation in public finances is critical also according to the representatives of employers. However, Rastislav Machunka of the Association of Employers of the Slovak Republic added that protests are not justified. The AZZZ criticized the prepared cancellation of the possibility to deduct paid contributions to the third-pension-pillar and life insurance payments from the tax base, unifying the flat-rate expenditures or cancellation of tax relief for the so called red diesel that farmers can buy for their machines at lower prices. At the same time, they object the planned increase of the excise tax on beer.
President of the National Association of Employers Marian Jusko sees the way out of the current situation in kick-starting creation of new jobs. As he added after the Tuesday tripartite meeting, he believes the Cabinet will continue in improving the business environment.
The discussion of the Economic and Social Council continued on Tuesday after the tripartite failed to reach a consensus on the amendment to the social insurance law. The KOZ questioned the new method of valorizing old-age pensions, according to which all pensions should increase by a fixed sum as of 2012 calculated based on the annual rate of inflation and the average old-age pension. “We are not against valorization of pensions by a fixed sum but according to our calculations the proposed method means lower pensions in the future,” said Mr. Mojs.
The Slovak Agricultural and Food Chamber is also unhappy with the results of the tripartite meeting. As the deputy chairman of SPPK for agriculture and services Milan Semancik stated, they expected more sympathetic approach from the Cabinet representatives. They are dissatisfied mainly with their stance on four legal norm proposals SPPK finds important, that is law on municipal taxes and municipal fee for communal and small construction waste, excise tax on mineral oil and support of the sustainable energy sources as well as the value-added tax and the excise tax on beer, the spokesperson of SPPK Stanislav Nemec informed.
SITA