Social and tax measures to cost half a billion euros

Social and tax measures of the ruling coalition to be passed at the June parliamentary session will cost about half a billion euros, said Finance Minister Ladislav Kamenický after the Cabinet meeting on Tuesday. Various measures have been put forward by different members of the ruling coalition. SMER-SD wants to significantly increase parental allowance, some non-taxable items, and super-deduction of expenses for science and research. Its junior coalition partner, the Slovak National Party, proposes to cut the income tax rate for small businesses to 15%, reduce VAT on selected foods, and abolish TV and radio license fees for seniors. The third coalition party, MOST-HID, wants to reduce social security contributions and hike the non-taxable part of the tax base. According to the finance minister, it will be clear only in September what this will mean for the state budget, when the draft budget will be finalized and the latest macroeconomic forecasts will be available. Nevertheless, he says the government will try to maintain a balanced budget despite this impact.