Slovakia to impose 4.2% extra tax on regulated utilities in 2012, 2013.

By bne IntelliNews May 30, 2012
Slovakia plans to slap a special 4.2% one-off tax on the earnings of utilities in regulated sectors for this and next year in a bid to raise the state revenue and achieve its budget consolidation targets, TASR news agency reported. The extra tax will be applied to companies in the energy, telecoms and postal sectors, on top of regular corporate tax that is proposed to rise to 23% from currently 19%. The companies that will be taxed additionally should have an annual profit of at least EUR 3mn, Prime Minister Robert Fico told reporters. He added that the cabinet aims to collect EUR 100mn a year through the special tax and use them for financing activities aimed at boosting the economic growth. Slovakia needs to find some EUR 200mn in reduced expenditures or increased revenues this year to meet its 4.6% budget deficit target and up to EUR 1.5bn next year to reduce the shortfall to fit within the EUs 3% ceiling. Fico has already proposed an extra tax on banks, aiming to raise additional EUR 75mn this year and EUR 100mn next year. The proposals need to be approved by the parliament, where Ficos social democratic SMER-SD party has a sweeping majority of 83 deputies out of 150 seats. Slovakias main electricity producer, SE, is majority owned by Italy's Enel, the gas sector is dominated by SPP, 49%-owned by Gaz de France and Germanys E.ON, and the three mobile operators are run by Deutsche Telekom, France Telecom and Spanish Telefonica.

Related Articles

Slovakia one of possible locations for new BMW plant.

German car maker BMW considers building a new plant in eastern Europe and Slovakia is one of the potential locations, Hospodarske Noviny business daily reported citing BMW's board member Ian ... more

Slovakia jobless rate edges down to 14.7% in February 2013.

Slovakia's unemployment rate in February 2013 fell for the first time in six months going down to 14.7% from 14.8% in January when it reached its highest level in more than 8.5 years, data from ... more

Frances CCN Group considers new plant in Slovakia - report.

France-based CCN Group, a supplier of components for turbines and automobiles, considers building a new plant in Slovakia in the town of Belusa, Hospodarske Noviny daily reported citing unnamed ... more

Register here to continue reading this article and 2 more for free or purchase 12 months full website access including the bne Magazine for just $119/year.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

Thank you. Please complete your registration by confirming your email address.
A confirmation email has been sent to the email address you provided.

To continue viewing our content you need to complete the registration process.

Please look for an email that was sent to with the subject line "Confirmation bne IntelliNews access". This email will have instructions on how to complete registration process. Please check in your "Junk" folder in case this communication was misdirected in your email system.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

If you have any questions please contact us at sales@intellinews.com

Subscribe to bne IntelliNews website and magazine

Subscribe to bne IntelliNews website and monthly magazine, the leading source of business, economic and financial news and commentary in emerging markets.

Your subscription includes:
  • Full access to the bne content daily news and features on the website
  • Newsletters direct to your mailbox
  • Print and digital subscription to the monthly bne magazine
  • Digital subscription to the weekly bne newspaper

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

bne IntelliNews
$119 per year

All prices are in US dollars net of applicable taxes.

If you have any questions please contact us at sales@intellinews.com

Register for free to read bne IntelliNews Magazine. You'll receive a free digital subscription.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

Thank you. Please complete your registration by confirming your email address.
A confirmation email has been sent to the email address you provided.

IntelliNews Pro offers daily news updates delivered to your inbox and in-depth data reports.
Get the emerging markets newswire that financial professionals trust.

"No day starts for my team without IntelliNews Pro" — UBS

Thank-you for requesting an IntelliNews Pro trial. Our team will be in contact with you shortly.

Dismiss