Financial transactions tax has a large number of technical shortcomings and if it will be improved by MPs of the National Council (NR) of the Slovak Republic, President of the Slovak Republic Peter Pellegrini is prepared to support such changes. At the same time, he thinks that the state must find a way to completely replace the transaction tax in the budget in the future. Pellegrini announced it on the Sunday program Politics 24 on JOJ 24.
“Yes, I respect that the government has taken a transaction tax. I purely pragmatically proceeded to it. I had big reservations about her as president, I just signed it, as they told me that without the budget he would not be able to be approved, ” explained with the fact that As an economist, this tax makes no sense. For example, it does not understand why the company must pay it even when it sends a salary to the employee or why some hospitals have to pay it and others do not.
“The tax has a huge number of technical misunderstandings, incomprehensibility. If it improves it, I like it, I am ready to support any qualitative change. But in the future, I think the state must find some other way to replace this transaction tax,” He stressed Pellegrini. He recalled that it has been operating in only two countries for a long time. “If it was a good tool, I guarantee you that other governments will use it,” argued.
According to the President, the compensation for the loss of the state’s income in the case of a change or cancellation of the transaction tax could be found. The Ministry of Finance submits to the Prime Minister or the government a summary of dozens of measures to choose from. Pellegrini believes that Slovakia needs a more complex reform of the entire tax system, not just occasionally raising or lowering the rates of different taxes. “You have to settle it in the context of what our economy looks like, what we have economic growth,” approached.
