Slovakia Expects to Fetch More Tax Revenue on Reducing Tax Fraud

Slovakia expects to collect 290 million euros ($395 million) more in tax revenue than previously projected for this year as government measures to reduce tax fraud boosted receipts.

The improvement since the previous forecast released in February represents 0.4 percent of gross domestic product, Finance Minister Peter Kazimir told journalists in Bratislava, Slovakia, today. Receipts in 2015 and 2016 will exceed plan by 190 million euros and 202 million euros, respectively.

The administration of Prime Minister Robert Fico has boosted efforts to fight tax evasion with measures such as a 5,000 euro limit on cash payments or an electronic cross-check of invoices to squeeze the budget deficit below the European Union’s limit of 3 percent of GDP. Improved tax collection raises chances of meeting this year’s fiscal goal for a 2.6 percent shortfall, Kazimir said.

The budget is also benefiting from accelerated economic growth, which has helped boost job creation. The economy is set to grow 2.4 percent this year and 3 percent in 2015, accelerating from 0.9 percent in 2013, according to the revised ministry’s forecast released on June 16.

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