Časť živnostníkov podniká s minimálnym ziskom a
platí minimálne odvody aj preto, že si nevedia nájsť pracovné miesto, respektíve
zamestnávatelia ho nemôžu vytvoriť kvôli vysokému odvodovému zaťaženiu práce,
povedal pre The Slovak Spectator dňa 15.9.2008 Radovan Ďurana z INESS.
LABOUR
Minister Viera Tomanová, who has been at the vanguard of the Fico government’s
social policies, has expressed concern about the retirement benefits of
low-earning self-employed Slovaks, suggesting that if the state does not
intervene such people might end up with pensions beneath the level required to
provide for their basic subsistence. As a result, Tomanová has proposed a
change in the way payroll taxes are calculated for the self-employed.
The
Confederation of Trade Unions, who have consistently called for higher payroll
taxes for the self-employed, have firmly backed the minister.
Now an
expert group, including representatives of the government, trade unions and
employers are working on replacing the minimum wage as the basis from which
minimum social and health insurance contributions are calculated with a
different measure.
“Maybe it
could be defined as a percentage of the average wage in the national economy,”
the minister suggested as a possibility for the new minimum calculation base
for social contributions, as quoted by the SITA newswire. The new calculation
base must be defined in a way that would guarantee that self-employed people
are entitled to at least the minimum pension when they retire, she added. With
the current minimum wage set at Sk8,100 (€268.9), their pensions would be far
below the subsistence level, she added.
However,
what Tomanová has called an effort to shield the low-earning self-employed from
paltry pensions in the future, some have interpreted as a move to raise payroll
taxes in the present. Market watchers have also suggested that Tomanová’s
ministry should first analyse what impact the change would have on the 90
percent of the 300,000 self-employed who currently have their payroll taxes
calculated from the minimum wage.
Meanwhile,
the Sme daily quoted tax expert Jozef Mihál as saying that if the ideas of the
minister are implemented those self-employed who currently pay payroll taxes
from the minimum base might see their payments rise by 60 percent.
However,
the Labour Ministry rejected claims that its plans were intended to boost
payroll taxes.
“Minister
Tomanová again publicly declares that the Labour Ministry has neither prepared
nor is it preparing legislative changes which would mean increasing payroll
taxes for either employees or employers,” the ministry said in a memo sent to
The Slovak Spectator. “On the contrary, the ministry started working on new
rules for determining payroll taxes which would not be bound to the minimum
wage.”
Radovan Ďurana of INESS, an economic
think-tank, said that before the ministry starts making changes to the method
of calculating payroll taxes, it should analyse how many self-employed would
close their businesses and join the ranks of the unemployed as a consequence of
the change.
“Part of the self-employed run their business
with minimal profit and pay minimum payroll taxes because they cannot find a
job; employers in turn cannot create that job because of the high payroll
burden on labour,” Ďurana told The Slovak Spectator. “The attitude of the
minister once again shows that she does not trust the self-employed to realise
that they should provide for their old age.”
According to Ďurana, an eventual increase in
minimum payroll taxes would elevate the costs of business and thus deter those
self-employed who already run marginally profitable businesses.
“One should not forget that part of the
self-employed run businesses because they are unable to find jobs in their
region, so the result might also be higher unemployment,” Ďurana said.
However, Ďurana said that the whole system of
social security in Slovakia
requires a fundamental change of approach, not only in terms of the volume of
payroll taxes but also in the type and volume of benefits.
“Today the system cannot make a distinction
between well- and poorly-paid jobs and thus creates barriers in the employment
of low-qualified labour,” Ďurana said. “There should be a comprehensive
approach to any changes, and not a selective one as has happened so far.”
Market watchers, businesses and even the World
Bank have been calling on Slovakia to lower payroll taxes since a heavy payroll
tax burden has been seen as one of the most serious obstacles to doing
business.
According to Ďurana, the current government has
not reacted to calls by economists to reduce payroll taxes. On the contrary,
the steps it has taken have only increased them.
The
Slovak Spectator, 15 Sep 2008, Beata Balogová
