Slovakia’s Prime Minister has recently announced plans to introduce a special windfall tax on banks and to extend the existing tax on banking deposits, as part of government efforts to reduce the budget deficit.
The Government plans to introduce a special banking tax in Slovakia in 2012, to generate a much-needed EUR50m in additional revenues for the state. The Prime Minister also unveiled details of government plans to extend the existing 0.4% tax currently levied exclusively on corporate banking deposits to individual banking deposits, to yield a further EUR125m by 2013.
Within the framework of its austerity programme, the government has already announced its intention to ‘unflatten’ the flat income tax by introducing a higher rate of 22% for high earning companies and a 25% higher rate for individuals earning more than EUR33,000 per year. Currently, there is a flat tax of 19% in Slovakia.
Slovakia’s Prime Minister has nevertheless repeatedly ruled out the idea of increasing value-added tax (VAT).
