Finance Ministry: Assessment of Transaction Tax Premature At This Point

Bratislava, 10 July (TASR) - Although the financial transaction tax has been in effect since April this year, the first payment deadline for banks falls at the end of July and covers the previous three months, so a detailed assessment of the tax's impact will therefore become possible only after all payers submit their payments for the period, the Finance Ministry stated in response to Thursday’s criticism from the opposition party Progressive Slovakia (PS). „The Finance Ministry reiterates that the impact of the financial transaction tax is being exaggerated and misused by some politicians for their own political gain - and that certain media outlets are repeating these claims uncritically. These politicians selectively highlight examples of business owners who paid, for instance, €400 per month in the transaction tax. However, it’s important to note that these entrepreneurs were processing monthly payments of at least €100,000 or more," the ministry stated. The ministry also emphasized that, for example, the average monthly tax for small sole traders — assuming they have real expenses equivalent to their flat-rate costs — is under 7 euros. „If such entrepreneurs purchase goods for their business using payment cards, which are exempt from the tax, the impact is even lower," the ministry added. At a press conference earlier in the day, Progressive Slovakia representatives argued that after the first 100 days, the new tax has proven harmful to businesses - slowing economic growth, and increasing the use of cash in the economy. They claim the tax has delivered all the negative effects many had warned about. PS also called on the Finance Ministry to release official data on the transaction tax revenue and its potential impact on the collection of other taxes. mf