[ad_1]
An analysis in May by the Value for Money Unit (ÚHP) under the Ministry of Finance of the Slovak Republic pointed out the existence of a large number of fictitious self-employed persons in Slovakia, with the aim of reducing their number and thus improving the situation on the labor market. With this step, the state wanted to increase tax and levy revenues, forgetting about the free will of individuals to choose the right employment and legal relationship for themselves. The Institute for Economic and Social Analysis (INESS) reported on this on Wednesday, saying that the analysis had some flaws.
“Unfortunately, the analysis presented does not get us anywhere in the discussion about the tax burden on the self-employed. It contains many assumptions, unfounded assumptions, and unanswered questions. However, its greatest shortcoming is that it treats the self-employed as a problem from the outset. It does not attempt to identify and describe the benefits that would result from voluntary cooperation between market actors on the basis of the Trade Act.” Analyst Martin Vlacynský says in the latest INESS publication.
In its analysis, ÚHP calculated that the number of fictitious entrepreneurs is about 100,000, while experts point out that last year labor inspections found only 16 persons in violation of the law, i.e., carrying out activities outside the country in a dependent employment relationship. The number of fictitious self-employed people in the Slovak Republic should even be on the decline in recent years. Experts from the institute say that the total number of self-employed people in Slovakia is about 376,000, of which 201,000 are currently subject to social security contributions.
In Slovakia, there are possibilities and sufficient opportunities to decide on a suitable employment relationship
INESS also believes that the state’s definition of virtual entrepreneurs is problematic, considering only their external defining characteristics and forgetting about the individual’s internal free choice of such enterprises. The publication also talks about self-employed people who are involuntarily in such employment relationships. The institute points out that in the Slovak labor market, citizens have the possibility and sufficient opportunities to decide on a suitable employment relationship.
The ÚHP analysis predicts that state tax revenues will increase by between 177 and 251 million euros. However, INESS criticised the department’s assumptions in calculating this amount. “Higher taxes and levied revenues will disappear from the budget like steam from a pot, and the damage to entrepreneurs and the economy as a whole will be permanent. The budget situation is dire, but history tells us that raising taxes does not make it better. Instead, it only helps to push inefficient spending back into the pot.” Vlaczynski concluded.
[ad_2]
Source link
