Fico considering one-off telecoms tax as part of austerity programme

25 May 2012

The government of Slovakia has proposed the imposition of an extraordinary tax on telecoms operators as part of a framework austerity programme aimed at lowering its budget deficit to 2.9% of GDP by the end of next year, down from 4.8% in 2011. The preliminary plan which has been passed by parliament includes personal and business tax increases of up to EUR1 billion (USD1.25 billion) in 2012-2013. Prime Minister Robert Fico, whose Smer-SD party swept to power in March this year, is backing the idea of a one-off contribution from regulated sectors including telecoms, utilities and financial institutions to raise EUR375 million, reportedly including around EUR100 million from telecoms in 2012-13.