Slovak Tax Revenue to Exceed Plan by 0.3% of GDP in 2014

Slovakia said it expects to raise more taxes this year than projected, cutting its budget deficit to below the European Union ceiling of 3 percent of gross domestic product.

The government will probably collect 189 million euros ($259 million), or about 0.3 percent of GDP more than it forecast in the budget, Finance Minister Peter Kazimir said in capital Bratislava. Tax receipts in both 2015 and 2016 will exceed the plan by 0.2 percent of GDP, he said.

Prime Minister Robert Fico has strengthened efforts to fight tax fraud as he seeks to cut the budget deficit to 2.6 percent of GDP this year from an estimated 3 percent in 2013. The finances are also benefiting from an accelerating economy that is set to grow 2.3 percent next year, more than double the pace last year.

Improved collection of value-added tax accounts for 56 percent of the revenue boost, according to the Finance Ministry. Corporate income taxes will bring in 41 million euros more than planned as the improving economy boosts profitability, the ministry said.

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