Slovakia Boosts Revenues and GDP

September 27, 2013 Taxation In EuropeTaxation in Slovakia

Tax revenues in SlovakiaBRATISLAVA – Slovakia will see an additional EUR 132 million in tax revenues this year, with a significant portion of the new-found windfall coming from a crack down on tax evasion.

In a statement issued on September 26th the Ministry of Finance of Slovakia confirmed that tax revenues for the year are likely to exceed previous expectation due to the combined effects of higher-than-expected economic growth, and due to the government’s efforts to clamp down on the occurrence of tax evasion.

Tax revenues for the current year are now expected to exceed budgetary forecasts by EUR 132 million, or equivalent to nearly 0.2 percent of the national GDP.

The increase has been partially attributed to a pickup in the economy of Slovakia, which was foretasted in June to grow by 0.5 percent this year, but is now expected to expand by 0.8 percent.

In the statement the Ministry said that a significant portion of the extra tax revenues are a direct result of concentrated moves to fight tax evasion, as outlined in the government’s anti-avoidance action plan implemented in May 2012.

The main measures implemented so far as part of the plan all revolve around the reduction of VAT fraud, although in the near future the measures will be expanded to fight other types of illicit activity.

According to the government’s own estimates, the reduction in VAT fraud has resulted in the collection of an additional EUR 120 million in taxes this year.

Photo by Landahlauts