Milionaire's tax lower for politicians
Taxing of lawmakers' entire income remains under the Act.
The millionaire tax will practically not affect members of parliament. Whereas a person outside of politics who has an income of SKK 79 952 will have SKK 1 500 deducted, deputies will lose only about 180 crowns monthly, even though they earn more. Deputies will also be exempt from paying taxes on so-called regular re-imbursements , which increase their incomes by up to SKK 90,000 a month. These payments cover for instance business trips or expenses for travelling to work.
Parliamentarians accordingly save about SKK16,000 per year on the taxes they would pay under full taxing. Ján Počiatek's Ministry of Finance wished to deal with taxing of the legislators' repayments later, in one package with judges, prosecutors, state secretaries and other state employees who are eligible for them, but the Government decided that "taxation of deputies will be solved as has been decided", said Ministry spokesperson Miroslav Šmál, explaining the reason why parliamentarians will not be taxed as the Ministry originally proposed.
So that deputies will not completely avoid the extra tax, the Government last week lowered the limit of the untaxed wage minimum from 56,000 to under 48,000 crowns monthly. The complex taxation of bonuses for state officials has been postponed indefinitely. October 4
Sewon ECS, in place of Dräxlmaier, wishes to invest in hall
RIMAVSKÁ SOBOTA - The town recently brought into the headlines by the infamous affair with the German investor Dräxlmaier, which at the last moment pulled out of the deal to build a factory there, has a second chance. An interest in investing in Rimavská Sobota has been expressed by the Korean company, Sewon ECS, which manufactures components for the Kia automobile manufacturer.
Negotiations with the well-known supplier of bound cables for the automobile industry have been confirmed by the town's mayor Štefan Cifruš. "Representatives from the Korean firm visited us with the plan to locate a manufacturing factory on a 10,000 square metre area in the vacant halls of Rimavská Sobota cannery," reported Cifruš. October 2
Minimum wage rises
From October, the minimum wage will rise to SKK 7 600 per month. Those who work for the minimum wage will as a result see on their wage packets SKK 700 more gross than previously. This move, approved yesterday by the Government, follows Wednesday's agreement between Premier Robert Fico and trade union leaders on one hundred crowns more than the Ministry of Labour had originally proposed. But not everyone is pleased with the decision.
"It's not simply a question of the seven hundred crowns more that the employer will have to pay. Cpntributions for insurance will also be higher, which can cause problems not only for large employers but also for small traders," said Republic Union of Employers Secretary Martin Hošták. The President of the Slovak Trade Chamber Vojtech Gottschall agrees with him. In some segments of the Slovak economy, for example the agricultural sector, SKK 6 900 is the sum which corresponds to the labour productivity of people working for the minimum wage. If this is increased to SKK 7 600 by an administrative measure, their productivity will not rise by 700 crowns from one day to the next," maintained the head of the Chamber.
Since firms do not have the money for the investments necessary for radical increases in productivity, the result may be increases in prices. "I see inflation pressure here," added Gottschall. In his opinion an increase to 7 430 crowns, the sum on which members of the Association of Employer Associations and Unions agreed, would be acceptable. September 28
English translation by Kevin Slavin