Prime Minister Robert Fico has taken a leaf out of Hungarian PM Viktor Orban’s book and so wants to suck some extra money out of large companies using a ‘temporary’ extraordinary levy.
Fico’s stand-alone government is hoping to rake in around EUR 200 million from the levies over the next two years in order to balance out the deficit in public finances. The tax will apply to profitable undertakings like telecommunication operators, gas companies, heating companies or pharmaceutical companies.
Companies with over EUR 30 million in annual revenues are already about to be subjected to an increased tax rate, so the latest plan will bite further into their profits. “This is a temporary measure for two years” explained Fico, without any details of when the extra tax might be introduced or the system of calculating it, but the specifics are expected to come in the following weeks.
An article in today’s daily SME points to how Fico’s plan is very similar to those that Hungarian PM Viktor Orban introduced. In Hungary, operators pay between 2.5 to 6.5% from their annual revenues, while for energy companies the rate is 0.3 to 1.05%, being set depending on the level of profits. Budapest also levies this tax from insurance companies and security brokers, with SME citing analyst Markéta Šichtařová from the company Next Finance as saying “Those taxes were also part of the mosaic that destroyed the credit of Hungary abroad and in Brussels”.