Csa­ba Áren­dás – Ta­más Du­dás – Gá­bor Il­lés – Ma­ri­an­na Szinek Kénesy Tax re­form in Slovakia in 2004 – the one year of 19%

The ma­in goal of the study is to demonstrate the tax re­form that took place in Slovakia in 2004 and its economic and social consequences as well. The authors of the study defined three ma­in goals, of which the goal of the first is to demonstrate those new ideas and reforms that stand behind the tax reforms. The second most important goal of the study is to demonstrate the consequences of the tax re­form made in Slovakia on the population and the Slovak economic system as well. The third, (less important) goal of the study is to emphasize those elements of the Slovak tax re­form that were successfully made and those that – according to the authors – are not advisory to follow in a possible planned tax re­form of another country.

The set goals are reflected by the structure of the study, that consists of three parts. The first part is an introduction that shows the role of taxation in the mo­dern market economy and outlines the possible tax reforms. This part gives a picture on the tax reforms that have been made recently, that inspired the Slovak tax re­form in a great extent. The second part of the study is perhaps the most important part which introduces the steps of the Slovak tax re­form and outlines the effect of reforms on the population. The third part analyses the consequences of the reforms, too, but in this part the effect of the reforms on state budget and economic indicators is in central position.
It can be stated that the budget data that have been recorded up now expressly confirm the positive effect of the Slovak tax reforms on budget. There was no shortage of tax revenues that has been anticipated by pessimistic economic analysts, revenues of tax types that are the most concerned by the reforms (personal income tax and company tax) increased compared with the budget plans and tax revenues of the year 2003, as well. Revenue deficits were present in case of in­te­rest tax and value-added tax, but its reason was in both cases different from effects of the tax re­form.
What could be a better proof for the success of an immense tax re­form than an immense domestic and international positive reaction. Obviously, the reaction of the media cannot serve always unconditionally as a correct measurement, although one thing is sure that there are provable advantages of selecting one-rate taxation. Perhaps the most important of them is the increase taxation transparency, and/or inspiration of economic object to reach a higher pro­fit and to show it actually. Therefore the rate of legal la­bor provision increases. One-rate taxation supports mo­re free investment, savings, and consumption, economical costs decrease, this way ensuring a real basis for foreign capital investments. Like Slovakia, other transition countries should also consider these advantages. Obviously, one-rate taxation is not a remedy for every problem, another economic measures that influence economy are to be applied, too.