Transaction tax or transaction hell? Entrepreneurs complain: Hope the new government will abolish it immediately

The new transaction tax, which has been in force since the beginning of April, is already raising the first practical concerns. Small entrepreneurs warn that it takes away their appetite to develop their business, experts warn of price increases and leakages into the grey economy.

Criticism is coming not only from business representatives, but also from the political opposition, which speaks of a "transaction hell" and warns of further increases.

Coffee blogger: the state milks and demotivates entrepreneurs

Coffee blogger and entrepreneur Ladislav Király posted on Instagram the reaction of one of the roasters who started to register a decline in the account just after the introduction of the new tax.

"The state should help entrepreneurs because they create value and employ people. Instead, it milks, suffocates and demotivates them," Király concluded.

According to him, entrepreneurs are losing resources that they would otherwise invest in development.

"Even I, as an owner of an eseroca, am losing my appetite for arranging new deals. When the state steals something from every transfer, I have no desire to pay for services," he added.

Finfluencer Michalovich: Everyone will feel it, even the citizen

The professional side of the impact of the new tax was presented by financial influencer František Michalovích, who answered the following questions for ta3:

How do you perceive the introduction of the transaction tax?

The transaction tax is an ineffective solution that does not help consolidate public finances and at the same time stifles the business environment. It discourages business development and potential new foreign investment.

What do you think are the biggest problems or risks that this tax brings to companies, entrepreneurs and sole traders?

First and foremost, the lack of clarity of the rules, which were hastily put together a few weeks before its introduction. Both the tax administration and the Ministry of Finance acted in an opaque manner, and both the entities affected by the tax and the banks, which are supposed to set up transaction accounts and deduct the tax, had no idea how to proceed. The result was total chaos.

Another risk is the weakening of the competitiveness of Slovak companies vis-à-vis foreign companies based in countries where such a tax does not exist.

And we should not forget the possible financial problems resulting from the loss of customers when prices are forced up, especially in low-margin sectors.

What is the financial influencer's advice to entrepreneurs and how is the opposition reacting to the transaction tax? Find out on the next page.