preložiť It will pour billions into the budget. Coalition approves consolidation package, votes unanimously despite disputes
Parliament finally approves the consolidation package. 79 coalition members voted in favour of the law. None of the amendments were passed by the opposition.
The coalition was united, Fico also came
Despite internal disputes, the coalition was united in the vote. All 79 coalition members voted in favour of the package and the coalition's amendments. Prime Minister Robert Fico also came to the Chamber during the vote.
The consolidation package, which will help pour billions into the budget, was debated in the plenary in its final reading for less than three days. The opposition has reservations about it.
Hlasovanie o hlavnej časti konsolidačného balíčka
What's in the package?
The package includes, for example, an increase in the standard rate of value added tax (VAT) from 20 % to 23 %, a decrease in the reduced rate from 10% to 5 %, as well as the introduction of a new 19% rate on some items.
Corporate income tax will also be increased from a certain amount of companies' income. Entitlement to the child tax bonus or the so-called parental pension will also be modified.
The package consists of two legislative proposals, both of which were discussed by MEPs in an abbreviated legislative procedure at the current 19th parliamentary session. Most of the measures, amounting to around EUR 2 billion, are contained in the approved law amending certain laws in connection with further improving the state of public finances. Several amendments to the government's original proposal were made in Parliament through amendments.
The law amends the Income Tax Act. An increased tax rate of 24 % for corporations will be introduced. It will apply to companies with taxable income exceeding EUR five million. Through an amendment from the committees, the originally proposed rate of 22 % has thus been increased. This is due to the additional deletion of the higher rate of the special levy for the energy sector.
The amendment will also limit the entitlement to the child tax bonus for high-income taxpayers. This entitlement will gradually decrease if the income tax base is higher than 1.5 times the average wage in the economy two years ago. Parents of children over 18 will also no longer be eligible.
Some of the changes in the law are aimed at supporting small firms and sole traders. For example, the already lower tax rate of 15 % will be reduced to 10 % for taxpayers whose taxable income does not exceed EUR 100 000.
From next year, an amendment to the VAT Act will increase the basic rate of VAT from 20 % to 23 %, introduce a new 19 % rate and reduce the current 10 % rate to 5 %. The amendment also introduces a modification of the items that fall under the individual tax rates.
For example, the lowest rate of 5 % will apply to a defined range of basic foodstuffs, medicines, books, newspapers, magazines, meals in the catering sector, accommodation in the tourism sector and admission to sports grounds. Other foodstuffs and electricity will be covered by the 19 % rate.