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

In your opinion, are there ways in which companies can legally adapt or minimise the impact of this tax?

The simplest solution, chosen by the majority, would be to pass the cost on to the end consumer. That is to say, an increase in the price of goods and services, which will ultimately be felt by every citizen.

What does this mean in practice?

Everything around us will become more expensive. Businesses and tradesmen will be forced to pass on the increased costs in the prices of goods and services - at least in the amount of the transaction tax.

The government argues that the aim of the tax is to stabilise the budget. In your opinion, is this realistic without negative side effects?

The revenue from this tax will not be as significant as its consequences will be. The business environment will weaken, companies will leave for countries with more favourable conditions - for example, the Czech Republic. In addition, there is a risk of an increase in the grey economy, and the state may ultimately lose more than it gains.

What advice would you give to companies and entrepreneurs who are most worried about this tax today?

I would recommend looking for alternatives that will help optimise costs, and be as flexible as possible. The Slovak economy is unpredictable at the moment - and unfortunately that is the reality.

Do you see room for change or even abolition of this tax?

There must be a government that is economically sound, pro-business and not populist. I believe that the next government will abolish this tax on the first day of its reign, because it does not make economic sense.

Viskupič: Transactional hell and further price rises

The opposition has also been critical of the situation. Marián Viskupič, the vice-chairman of SaS, at a press conference described the measure as a "transactional hell".

Tlačová beseda politickej strany SaS k transakčnej dani:

"On the first of April, the transaction tax - transaction hell - began to take effect, levying a chain-wide tax on businesses on every single transaction. It's just unreal, unbelievable," he declared.

He also warned that the government is preparing another measure which he said will further burden entrepreneurs. The cabinet has already asked the European Union for permission to restrict the right to deduct VAT on the purchase, leasing and operation of motor vehicles also used for private purposes. "That deduction will only be allowed to be 50%. The measure will also affect spare parts, maintenance and fuel," Viskupič added.

He admitted that some other countries have a similar exemption, but said that combined with the transaction tax, it is another cost increase that will hit Slovak companies.

PS: We will repeat the request

Progresívne Slovensko has not remained silent either. It has already submitted to the parliament an amendment to the law on local government financing, which aims to abolish the transaction tax on 1 May 2025. The proposal was submitted in response to the growing outrage of entrepreneurs, tradesmen and companies. They are only these days realising on their bank statements the amount of the new levy on each transaction.

The movement wants to discuss the abolition of the tax directly in the plenary of the parliament and, according to its words, it will repeat this demand until the changes are adopted.

The movement points out that not only they, but also the entrepreneurs themselves have been warning about the destructive consequences of the new tax from the very beginning. In their view, the coalition is already beginning to realise that the measure was a mistake. "Even in the ruling coalition they are realising the scale of the problem and the fact that they have been wrong. Andrej Danko is saying it openly and Peter Žiga admitted it yesterday," said chairman Michal Šimečka.

The progressives describe the law as the final nail in the coffin of the Slovak economy, which is already facing the consequences of high prices, increased VAT and the overall "Fico's dearness".

K transakčnej dani má výhrady aj opozičné KDH. Adresovalo ich už 1. apríla.