The new tax and levy reform will be buttressed on fair taxes, a single tax and single levy as well as benefits of €200 per child per month said Finance Minister Igor Matovič on Wednesday. Matovič aims for Slovakia to be Europe's pro-family policy leader through the highest income allowances per child.
The Finance Minister believes that the reform costs might amount to €2.5 billion. However, he refused to specify how should this money be obtained. He plans to unveil more details in "a few weeks", quite likely "in two weeks".
On Wednesday, a document called The Big Bang was leaked, which is allegedly the draft of the reform. The Denník E daily wrote that employees of the Finance Ministry had confirmed its authenticity. According to it, the draft of the reform counts with an increase in VAT from 20% to 25%. Nevertheless, Matovič disavowed reports of a potential VAT hike to 25 percent as untrue. He aims to obtain finance partially by increasing other taxes and partially by increasing public deficit.
The coalition partners however, have not commented whether they will support the reform. The Freedom and Solidarity party in particular claims that it is against increasing the tax-levy burden. Matovič also said that he is willing to forge a deal on it also with the opposition. According to opposition Voice-SD party, Matovič promised to unveil his new tax-levy reform, yet failed to present anything.
The new reform is expected to come into effect as of next year, however, the Denník E daily wrote that there is not enough time to prepare the more complex parts of it.
