The European Commission has voiced criticism of Slovakia's transaction tax, arguing that it undermines the competitiveness of Slovak businesses. This criticism is included in the European Semester 2025 Spring Package, which provides recommendations for individual countries.
The Commission's stance aligns with concerns raised by entrepreneurs, businesses, experts, and opposition members in Slovakia. They believe the tax harms the business environment, effectively hindering it. The Commission also notes that the tax contributes to higher prices and encourages cash payments, raising concerns about tax evasion.
Slovakia is the only Eurozone country with a transaction tax, with Hungary being the only other country to implement it, although they do not use the Euro. Finance Minister Ladislav Kamenický has long defended the tax, predicting it will generate approximately €700 million. The European Commission emphasizes that the transaction tax, combined with higher corporate taxes, creates a significant tax burden for Slovak businesses. It is essential for Slovakia to remain attractive to investors even after consolidation measures.