Parliament Definitively Passes New Transaction Tax

Bratislava, October 3 (TASR) - As part of the consolidation of public finances, MPs definitively approved a law on a financial transaction tax on Thursday. The law was dealt with via a short-tracked legislative procedure during the ongoing House session. The tax rate will be 0.4 percent of the amount of the financial transaction, with a ceiling limit of €40. The tax on cash withdrawals will be twice as high, i.e. 0.8 percent. The financial transaction tax should bring €700 million per year into the state budget, but the figure for next year will be lower, as the tax will only take effect as of next April. "The tax will be paid mainly from invoices, energy bills and loan instalments," said the Finance Ministry. The law defines a financial transaction as a payment service provided by a payment service provider based on the order or consent of a taxpayer. Exempted from the tax are financial transactions related to the payment of taxes, levies and contributions to the state budget, levies to social-security provider Socialna poistovna and health-insurance levies. As part of the law, MPs also approved an amending proposal that scraps the obligation for outlets to accept payment cards. ko/df