KOZ: Gov't Should Improve Efficiency of Tax Collection as Part of Consolidation

Bratislava, 21 June (TASR) - The Trade Union Confederation (KOZ) proposes to improve the targeting of energy aid, the efficiency of tax collection and the fight against tax evasion, or to reduce the number of state institutions as part of consolidation, instead of blanket cuts to the labour force of the public administration. According to its own draft consolidation measures published by KOZ earlier this week, the currently adopted consolidation measures are not sufficient to reverse the government's unfavourable performance, so additional measures will need to be taken. "With regard to the negative social impacts of already adopted consolidation measures on employees, the KOZ drafted its proposals so that they would not have any further impact on employees and their families, and so that they would not complicated collective bargaining. "We reject consolidation only at the expense of employees and socially weaker, vulnerable people," stated KOZ. The unionists propose adjusting the energy aid system so that it is directed to where it is necessary, especially to low-income households. In addition to targeted energy assistance, a housing allowance could be introduced, which would be intended for households at risk of energy poverty. Another measure is cost-saving on the part of the state, whereby the government could introduce regular expenditure revisions or streamline operations in the public sector, for example by introducing optimisation of costs for IT systems' operation. Further savings would also be possible through the centralisation of public procurement, with central energy procurement alone potentially saving €10 million, according to the KOZ. Another area where the state could save costs is property tax, with higher taxation applying to more luxurious real estate and those used for commercial purposes. Changes to tax licenses could also be introduced, withholding tax on dividends increased to at least 10 percent, or the corporate tax rate could be increased, suggests KOZ. ko/mcs