Bloomberg News

Slovak Lawmakers Back Tax Surcharges for Banks, Utilities

July 26, 2012

Slovak lawmakers approved a tax increase for banks and a surcharge for regulated companies in the energy and telecommunications industries to boost budget revenue.

The Parliament in the Slovak capital, Bratislava, supported a 4.4 percent tax for all companies with an annual profit exceeding 3 million euros ($3.75 million) and whose activities are regulated by the state. Lawmakers also expanded the 0.4 percent tax on bank deposits to include retail funds and introduced an one-time levy on lenders.

The government of the eastern euro-area nation is striving to muster 1.5 billion euros in savings and additional revenue in 17 months to meet its pledge to narrow the budget deficit below the European Union limit of 3 percent of gross domestic product. Premier Robert Fico also plans to raise corporate income tax to 23 percent from 19 percent in 2013 as well as tax more highest- earning individuals.

Fico, an advocate of more state influence in the economy, has criticized banks and regulated companies for “excessive” profits.

The Finance Ministry expects to collect an additional 175 million euros by next year by broadening the bank tax and imposing a new levy. The tax surcharge on regulated companies, due from October, should boost revenue by about 100 million euros.

To contact the reporter on this story: Radoslav Tomek in Bratislava at rtomek@bloomberg.net

To contact the editor responsible for this story: James M. Gomez at jagomez@bloomberg.net


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