KDH Calls for Abolition of Transaction Tax and Compensation for Businesses

Bratislava, 13 May (TASR) - The opposition Christian Democratic Movement (KDH) has warned of worsening sentiment among entrepreneurs and investors in Slovakia, citing data from foreign chambers of commerce, and the party is again calling for the abolition of the transaction tax while proposing a compensation mechanism for companies. "We're seeing a long-term trend of declining motivation to invest, along with rising distrust in the economic environment. Companies are leaving, shutting down operations and showing less willingness to expand their businesses," warned KDH MP Rastislav Kratky at a press conference on Wednesday. In Kratky's view, this development is partly linked to the state's fiscal policy and the introduction of the transaction tax. KDH argues that the measure has had a significantly negative impact on the business environment and investment activity. "The transaction tax has become a symbol of bad tax policy. It needs to be abolished, and the damage that it's caused must also be repaired," stressed Kratky. KDH is therefore proposing that the government should prepare a mechanism allowing companies to offset transaction taxes already paid against future tax liabilities; for example, via deductions from corporate tax. According to the party, this would be a temporary pro-growth tool aimed at supporting investment and competitiveness. "We don't regard entrepreneurs as the state's cash cows, but as partners who create wealth. If the state has made a mistake, it should be able to correct it," said KDH public finance expert Martin Stuk. He added that the proposed system should include time and financial limits in order to comply with state aid rules. KDH also called on the government to present a comprehensive package of pro-growth and consolidation measures instead of disputes over individual policies. In the party's view, such a package should combine lower tax burdens, a more efficient state and support for investment. mf/df