ISP: Tax Freedom Day in Slovakia One of Latest in Past 25 Years

Bratislava, 25 June (TASR) - Tax Freedom Day, the date on which citizens symbolically pay off all their due payments to the state and start working for themselves, fell on June 26 this year, which is a slight worsening compared to last year, when this day fell on June 22, the Freedom and Business Institute (ISP) told a news conference on Wednesday, adding that this was one of the worst results seen in the past 25 years. "Tax freedom also includes the calculation of the tax burden per employee earning an average salary. This is what remains to a person after s/he and her/his employer have paid all direct and indirect taxes and levies. This indicator is also very unfavourable for employees in Slovakia, since only 42 percent out of 100 percent of an employer's total wage costs remains to an employee, while the state takes 58 percent from him/her in various ways," said ISP chairman Jan Oravec. Concerning the development of Tax Freedom Day in Slovakia between 2000 and 2025, Slovakia posted the best results in 2003-2008 when this day fell on late May. In 2003 it was May 27, in 2004 it was May 21 and in 2007 it was even May 13, which is the earliest date seen during the whole 25-year period monitored. Meanwhile, the latest results are among the worst ones, as this day moved to the dates attacking the end of June. The international comparison shows that Tax Freedom Day in Slovakia is the 11th latest from all the EU countries. If the countries are divided into three groups, Slovakia belongs to the group with the highest level of public expenditures, as well as tax burden when compared to the other EU countries, stressed the institute. The institute warned that public spending got out of control, with its share in GDP constantly growing. It sees one of the main reasons for this in the reluctance to implement reforms. According to experts, the problems are useless ministries, too large a public administration, and subsidies to businesses. ko/mcs