KDH Calls on Government to Support Business Sector by Abolishing Transaction Tax

Bratislava, February 7 (TASR) - The opposition Christian Democrats (KDH) called on the government to stop wasting public funds, abolish the transaction tax, transfer half of the EU funds to municipalities, and start saving on themselves, KDH MPs stated at a press conference on Friday, where they highlighted the impact of government decisions on the business sector and employees. "There are four areas in which the government should act immediately. The first is public finances. Do something about saving on yourselves, not on people and employers. The second area is taxes. Abolish the transaction tax. The third area is investments. Do something with the drawing of EU funds, we need to speed this up. And the fourth area is to negotiate in the EU to prevent the USA from imposing tariffs on imports of goods from the EU," as MP Jozef Hajko (KDH) addressed the government. According to the KDH, the problem lies in the broken finances and the collapsing social-security provider Socialna poistovna with a deficit of about €2.7 billion, stated Hajko. "Through higher levies, the employer costs would increase by 4.4 percent, while high levies are already a serious problem for Slovakia. However, this is the result of the government's policy, which wastefully spends on 13th pensions and energy assistance. Therefore, we appeal to the government not to waste and scatter resources, but to save on themselves and provide necessary benefits as targeted as possible," he stated. The KDH once again raised concerns about the new transaction tax, which, according to the party’s economic expert Hajko, will impose an average cost of €50 on every salary paid annually. He stated that this could drive companies abroad, prevent new foreign companies from coming in, and increase costs for employers. As a result, they called on the government to abolish the transaction tax. The party also sees a problem in the insufficient drawing of EU funds. They propose moving half of the EU funds to municipalities and adding money for co-financing. "Local authorities have already proven multiple times that they can draw EU funds better, faster, and more efficiently," emphasised Hajko. The KDH also sees a risk in the announced tariffs on exports to the USA, which could lead to higher prices for Slovak cars in the US, potentially reducing their sales by an estimated 6 to 9 percent. Hajko reminded that this could result in an export loss of between €150 and €300 million annually. lin/mcs