{"id":24636,"date":"2026-10-05T09:31:12","date_gmt":"2026-10-05T07:31:12","guid":{"rendered":"https:\/\/barikada.sk\/?p=24636"},"modified":"2026-10-05T09:31:12","modified_gmt":"2026-10-05T07:31:12","slug":"slovakia-postpones-abolition-of-financial-transaction-tax","status":"publish","type":"post","link":"https:\/\/barikada.sk\/?p=24636","title":{"rendered":"Slovakia Postpones Abolition of Financial Transaction Tax"},"content":{"rendered":"
The Slovak government will not abolish the financial transaction tax ahead of the 2027 parliamentary elections, Finance Minister Ladislav Kamenick\u00fd said.<\/p>\n
The tax, which is currently paid by companies, will remain in force throughout next year, with its abolition now planned for January 2028. As a result, around \u20ac500 million in annual revenue from the transaction tax will remain in the state budget in 2027, while the resulting loss of revenue will be faced by the government formed after the elections.<\/p>\n
Prime Minister Robert Fico also confirmed that the tax would not be abolished. According to him, the state needs the revenue to finance its priorities, including the construction of hospitals and other public projects.<\/p>\n
\u201cThis is, of course, an election-year budget, but at the same time it is a budget that will not increase taxes and contributions in Slovakia,\u201d Kamenick\u00fd said. He added that keeping the transaction tax was also linked to the need to take into account the priorities of the governing coalition partners.<\/p>\n
Change of Position<\/strong><\/h2>\n
In August, Fico himself said he intended to ask the Finance Ministry to prepare for the abolition of the transaction tax from 1 January 2027. At the time, he said its introduction had faced serious criticism and that its abolition should therefore receive \u201cbroad support from both social dialogue representatives and coalition and opposition parties.\u201d<\/p>\nRobert Fico. Photo from his personal Facebook page<\/figcaption><\/figure>\n
The financial transaction tax became part of the government\u2019s package of measures to consolidate the state budget and came into effect on 1 April 2025. It applies to virtually all monetary transactions involving both cashless and cash payments. The main rules are:<\/p>\n
\n
businesses pay a tax of 0.4% on each bank transaction, with the amount capped at \u20ac40;<\/li>\n
cash withdrawals from a business account through an ATM or at a bank branch are subject to a 0.8% tax regardless of the amount withdrawn;<\/li>\n
a \u20ac2 tax is charged for using a payment card at least once during a calendar year.<\/li>\n<\/ul>\n
The main purpose of introducing the tax was to increase state budget revenue amid the growing deficit. However, many entrepreneurs and experts have said that the tax negatively affects small businesses and creates additional administrative barriers.<\/p>\n
Amid criticism of the tax, all sole traders (\u017eivnostn\u00edci) were exempted from paying it from 1 January 2026.<\/p>\n
What Will the 2027 Budget Look Like?<\/strong><\/h2>\n
The government plans to approve the draft 2027 state budget on Monday, 5 October. It is expected to have a deficit of \u20ac7.5 billion, or 4.94% of GDP. State budget revenues are projected at \u20ac63.3 billion, while expenditure is expected to reach \u20ac70.8 billion.<\/p>\n
At the same time, the draft budget does not include any major new taxes or envisage significant spending cuts. The government describes it as a compromise and election-year budget.<\/p>\n
The budget includes 13th pensions worth around \u20ac916 million, the continuation of government assistance with energy costs, for which \u20ac250 million has been allocated, as well as wage indexation in the public sector.<\/p>\n
Around another \u20ac700 million is earmarked for the construction, renovation and equipment of hospitals. Additional funding will go to support families and the economy, prepare for the construction of a new nuclear power plant in Jaslovsk\u00e9 Bohunice, and measures to combat drought.<\/p>\n
According to the draft budget, public debt will continue to rise, from an expected 63.4% of GDP in 2026 to 66.3% in 2027. The government also expects moderate economic growth to accelerate from a projected 0.8% in 2026 to 1.8% next year. At the same time, according to the Finance Ministry\u2019s forecast, inflation is expected to fall from 3.7% to 2.9%.<\/p>\n","protected":false},"excerpt":{"rendered":"
The Slovak government will not abolish the financial transaction tax ahead of the 2027 parliamentary elections, Finance Minister Ladislav Kamenick\u00fd…<\/p>\n","protected":false},"author":2,"featured_media":6362,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"footnotes":""},"categories":[507],"tags":[],"class_list":["post-24636","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-english","entry","rows-excerpt"],"yoast_head":"\n
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