KDH to Propose Exemption from Financial Transaction Tax for Nonprofits and NGOs

Bratislava, October 1 (TASR) - The tax on financial transactions will utterly jeopardise the aid for the people in need, which is why KDH plans to submit an amending proposal on behalf of the opposition to exempt from the new tax nonprofit organisations and civic associations that substitute the state to a certain extent in social spheres, TASR learnt on Tuesday. "We're submitting an amending proposal, drafted across the entire opposition, to exempt from the tax on financial transactions civic associations, foundations, non-investment funds, nonprofit organisations providing public services, registered churches and religious organisations, special purpose organisations founded by churches, organisations with international elements and the Slovak Red Cross," stated Marian Caucik (KDH). According to Caucik, nonprofits and NGOs have been reaching out to KDH daily with warnings that the tax on financial transactions will pose a great problem to their operations. "One of the examples is an organisation for young people, which calculated that the newly-introduced transaction tax is going to cost them €7,000 annually, which amounts to about one-third of the 2-percent tax assignation they receive and that is likely to be cut severely too over changes to the 'parental pensions'," he said. "The government-induced price hikes will affect everyone, but especially 950,000 citizens made up of seniors, single-parent households, people with disabilities and others," added MP Andrea Turcanova (KDH). Retirement homes for seniors and homeless shelters will struggle too, as the new tax on financial transaction coupled with food and energy price hikes are going to eat thousands or even tens of thousands of euros out of their budgets. "They face personnel shortages over low wages as it is," claimed Turcanova. mf/mcs