Analysts are reserved over SNS proposal for tax cuts

Economists have reservations on proposal of the Slovak National Party (SNS) that companies and self-employed people with an annual turnover of up to €100,000 should pay a 15 percent income tax. "We believe that the intention is good, but the amount of €100,000 is essentially a very small turnover, so it is questionable how many entrepreneurs would actually be concerned. As support for micro or medium-seized companies, however, this is not an entirely bad proposal," said Peter Serina, Executive Director of the Business Alliance of Slovakia (PAS). Analyst Martin Vlachynsky of the Institute for Economic and Social Studies (INESS) thinks that lowering the tax rate only for self-employed and micro-companies is better than nothing, but that this will not significantly influence the business environment. Director of the Institute for Economic and Social Reforms (INEKO) Peter Goliaš pointed out that when setting different tax rates for businesses according to turnover, the motivation will increase for larger companies to artificially split into smaller ones in order to pay a lower tax. The goal of the government should be to create a level playing field for all.