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Planned changes in Slovak tax system

4. April, 2012

The left leaning Smer party, which was elected in 2012 has announced its plans of handling public finances by implementing changes in the Slovak tax system. Smer party wants to cancel the flat tax by implementing heavier tax rates for the rich and for highly profitable businesses, as well as by introducing taxation of luxury products and services, and also applying a higher levy on banks.
The new government is planning to increase taxes for high-earning individuals to 25 percent and for the most profitable firms to 23 percent. People who will purchase luxury cars might have to pay special one-off taxes which will depend on the engine size and emissions of the car.

The proposed new tax system is one of the tools which will be applied by the government in order to push the budget deficit of Slovakia under 3 percent of GDP by 2013, as required by EU fiscal rules.