The prepared tax on financial transactions in Slovakia could result in higher interest rates on loans, decreased return on mutual funds, lower pensions from the second and third pension pillars, or deterioration of financing the state debt. This is a warning from representatives of five financial associations in Slovakia. The financial transaction tax should come into force from the beginning of 2014. According to estimates of the Slovak Finance Ministry, this tax should raise 29 - 46 million euro per year.
Apart from Slovakia, 10 other countries of the eurozone have joined this proposal. Representatives of financial associations claim that they see no reason to introduce this tax in Slovakia. The main reason for its introduction should be participation of the financial sector on costs incurred by the financial crisis. However, the Slovak Banking Association points out that Slovakia was one of three eurozone countries that did not have to provide any assistance to the financial sector during the crisis. They further warn that if the tax on financial transactions is introduced in Slovakia this could create pressure to increase prices of financial products and services, and reduce liquidity of the financial market. Financial associations in Slovakia claim that the anticipated revenue from this tax might not be achieved. “I feel this is just a political game and economic benefits for countries will not be all too great,” said the executive director of the Slovak Banking Association Ladislav Uncovsky.
Katarína Richterová
