The co-governing Freedom and Solidarity (SaS) party cannot agree with a proposal to increase mandatory levies that is included in the first part of the draft pension reform prepared by Labour, Social Affairs and Family Minister Milan Krajniak (We Are Family), according to Deputy Economy Minister Jan Oravec. "Colleagues at the Labour Ministry first submitted the law on social economy for inter-departmental review, suggesting a bizarre regulation of family businesses, with which - even with the best of intentions - we cannot agree. They did so unilaterally and without any agreement from us." Now the Labour Ministry is putting forward a proposal to increase compulsory levies with which the liberals cannot agree either, stated Oravec, adding that they did so unilaterally and again without any agreement.
Labour Minister Milan Krajniak presented details of part of the draft pension reform at a news conference last Thursday (July 29). The reform should be partly financed by people with high income. The Labour Ministry is suggesting that levy ceilings be scrapped, which would concern some 5 percent of the richest people in the country. "I expect this measure to meet with resistance. However, I think people with a monthly income of €7,700 or more can afford to show a little more solidarity," stated Krajniak. The move would apply to less than 50,000 of the richest people, who would bring in €150 million to the budget in 2023.
Preparations for the tax-levy reform are dormant at the moment, Vice-premier and Finance Minister Igor Matovič (OLaNO) told a news conference on Monday (August 2). "The reform is at a dormant stage, as the Freedom and Solidarity (SaS) party via its actions and public statements is actually 'declaring' that we won't create any tax and levy reform, as it doesn't agree with anything," said Matovič. He presented the outlines of the tax-levy reform on May 5. He declared at the time that its pillars will be fair taxes, a flat-rate tax and flat-rate levies as well as a benefit of €200 per child per month. He also characterised media reports of a potential VAT hike to 25 percent as untrue. The Finance Minister then quantified the cost of the reform at €2.5 billion, adding that the money to cover it should be acquired from a number of sources. Matovič in early May promised to present the details of the reform in about two weeks, but failed to meet that deadline.
