Slovak president vetoes income tax bill

Slovak president Ivan Gasparovic has vetoed the government’s income tax bill today. In the justification of the veto, Gasparovic expressed special concern about the part on CO2 permits.

The bill foresees the introduction of a one-off 80 percent tax on excess carbon dioxide allowances which companies received from the previous government. It is part of the government’s strategy to reduce the budget deficit from 7.8% to 4.9% – the CO2 permit bill alone would increase state revenue by 70 million euros ($93 million).

President Gasparovic justified his veto saying that this policy was retroactive and not in congruence with Slovakia’s commitment to emissions reduction. He returned the bill to parliament asking for amendments in this spirit.

The veto can now be overridden by an absolute majority of votes in the 150-deputy assembly – the government currently holds 79 seats.

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