Social partners against introduction of insurance tax

The Economic and Social Council has not agreed on the draft bill introducing an 8 percent tax on insurance as proposed by the Finance Ministry. "We perceive this as additional costs that will be charged, of course, through increased insurance premiums for all those responsible who buy insurance for themselves, whether they are entrepreneurs or citizens," said Vice-President of the Federation of Employers' Association Rastislav Machunka. According to him, it is unnecessary to "modify a fee that already exists today". The Finance Ministry does not rule out the fact that some insurance companies will project the insurance tax into costs of their insurance products. The Finance Ministry believes that in particular, capital-weak insurers or those with a weaker position on the market could hike the prices of their products. However, according to Finance Minister Peter Kažimír, this is only a legislative technical change. A transfer at an 8% rate from insurance will be replaced by an eight-percent insurance tax. He will present the draft bill on insurance tax with unresolved contradictions in relation to employers to Cabinet.