Kamenicky: Transaction Tax Important Part of Consolidation

Bratislava, April 7 (TASR) - The transaction tax is an important part of consolidating public finances, Finance Minister Ladislav Kamenicky (Smer-SD) has posted on a social network in reaction to calls for it to be scrapped that have recently been joined by coalition Slovak National Party (SNS) leader Andrej Danko. Despite opposition criticism, this new tax is working, and its impacts are only being "inflated in a populist manner", stated the minister. In this connection, Kamenicky asked his coalition partners not to help the opposition to dismantle the current government. "Torpedoing the consolidation of public finances is grist to the opposition's mill and irresponsible from the economic viewpoint. We don't want progressives to rule Slovakia. Let's stand up to them jointly, and especially professionally," said Kamenicky. According to the minister, the SNS leader knows well the condition in which the current government inherited public finances from previous ones. "Not only the coalition, but also the opposition, agree that consolidation is necessary. The transaction tax is part of the second consolidation package amounting to €2.8 billion, and Andrej Danko took part in the talks on its imposition and voted for it," stressed the finance minister, adding that the new tax should bring €700 million into state coffers, which wouldn't be easy to replace. One alternative would be, for example, to raise value-added tax (VAT) to 26 percent, or income tax by 13 percentage points (p. p.), which no one wants, stated Kamenicky. "Quite the opposite, thanks to the consolidation measures, including the transaction tax, we were able to reduce VAT on all foodstuffs, medicines, aids for the disabled, books, magazines, newspapers, catering and accommodation," underlined the minister. He pointed out that the transaction tax rate is 0.4 percent and has been capped at €40, which isn't an amount that would ruin a business. Unlike Hungary, where ordinary people also have to pay this tax, in Slovakia it doesn't apply to pensioners, employees, municipalities or regional authorities, and it isn't even paid for payment card transfers, stressed Kamenicky. ko/df