Slovakia Sees More Tax Revenue As VAT Collection Improves
02 December 2013
Posted by: Author: Radoslav Tomek
Author: Radoslav Tomek (Bloomberg)
Slovakia will receive more in taxes
than previously estimated as collection has improved, helping
the eastern euro-area member bring its budget shortfall below
the European Union’s ceiling.
The government will probably raise 154 million euros ($209
million) or about 0.2 percent of gross domestic product more in
taxes this year than it projected three months ago, the Finance
Ministry said in a statement on its website today. Tax receipts
between 2014 and 2016 will exceed the September forecasts by
more than 350 million euros a year, or 0.5 percent of GDP.
The second-poorest euro-area member is on track to bring
the budget shortfall below the EU’s limit of 3 percent of GDP as
early as this year after prospects for economic growth have
improved and the government is succeeding in its effort to fight
tax fraud. The economy is set to grow 2.2 percent next year,
accelerating from an estimated 0.8 percent in 2013.
Better collection of value-added tax has the biggest impact
on the revision of tax revenue, the ministry said. About two-fifth of the improvement in 2014-2016 stems from legislative
changes such as the extension of tax surcharge for regulated
Even after the revision, tax revenue will fall 349 million
euros short of the amount originally projected in the 2013
spending plan, which was based on an economic growth assumption
of 1.1 percent.
This article first appeared in bloomberg.com.