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Finance ministry raises 2014 tax revenue forecast by EUR 190mn on better VAT collection

February 23, 2014

The Slovak finance ministry raised its forecast for this year's tax revenue by EUR 190mn (0.3% of the projected GDP) from EUR 8.69bn, reflecting higher expectations for VAT collection, SME daily reported. The ministry also revised up the forecast for 2015 by EUR 130mn.

Expectations for this year's value added tax (VAT) revenue were improved by EUR 120mn from EUR 4.9bn projected earlier. As of January, Slovak firms have to submit to the tax authorities the so-called control statements for VAT, which should result in faster and more efficient control of VAT payers. The aim of the new measure is to help the state authorities to detect easier carousel fraud, deceit with invoices and to monitor more efficiently high-risk taxpayers.

Slovakia's state budget swung into a surplus of EUR 74.15mn at the end of January 2014 from a deficit of EUR 62.5mn a year earlier amid rising revenue and lower spending. The tax revenue, which is the main source of income, rose by 2.7% y/y to EUR 821.4bn, equalling to 9.5% of the annual target.

The Slovak government targets an end-2014 budget deficit of EUR 3.3bn, based on revenue of EUR 14.1bn and expenditure of EUR 17.39bn. The budget gap is projected to shrink to 2.64% of GDP, below the EU's 3.0% of GDP ceiling.

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Source: IntelliNews - Weekly Reports

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