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Slovak Tax Scheme to Raise Pensions Funds

2023/11/12
in Macroeconomics

Slovak Prime Minister Robert Fico is introducing a tax code change that allows citizens to donate a portion of their taxes to their parents instead of NGOs. This move is part of a larger reform aimed at raising money for 13th pensions next year, from €50-300 to €606. The current tax code allows individuals and companies to provide 2% of their taxes to an NGO of their choice. Critics argue that this move will harm anti-corruption non-profit organisations and those that help the elderly or seriously ill people.

Marcel Zajac, chairman of the Government Council for NGOs, warns that a change in funding for non-profit organisations could lead to a loss of significant funding. In 2023, Slovakia allocated €94 million to NGOs, a €12 million increase from the previous year. The Pontis Foundation has been the largest recipient of aid. Most donated money is assigned to social and healthcare organisations. The move is part of a larger reform aimed at raising money for pensions from €50-€300 to €606.

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