The government is willing to hike the incomes of villages and towns from personal income tax from the current 65.4 percent to 67 percent. After meeting representatives of the Slovak Association of Towns and Villages Prime Minister Robert Fico stated that the Cabinet plans to gradually agree on giving towns and villages the originally set share of personal income tax designed at 70.3 percent.
As chair of the Association of Towns and Villages Jozef Dvonč stated, the agreed increase will bring municipalities an extra €30 million next year which should help them to cover the increase in the salaries of school employees that the Government negotiated with the education trade unions earlier. Finance Minister Peter Kažimír claims this increase will not affect the draft budget nor the deficit target for next year, as this hike will be covered from a reserve they have planned for municipalities.
