By: The Quinnipiac University Economics Research Team, Jack Hangen
Throughout the COVID-19 pandemic, Slovakia lost approximately 42 million Euros in tax revenue. Despite being a considerable amount, total tax revenue losses were predicted to be 2 billion Euros, ultimately pailing by comparison to the government’s projections. The majority of these losses were derived from small businesses as the pandemic drastically reduced demand for certain industries (such as arts, culture, & hospitality), thereby minimizing the amount of taxable income available throughout the pandemic. Despite the dips in these sectors, tax growth is expected to resume with the application of an upcoming value-added tax (VAT). The only major concern now is that the next wave of the pandemic could further disrupt the labor market, reducing the amount of taxable income again, but for now things continue moving in a positive direction.
This article is based upon: https://spectator.sme.sk/c/22752727/loss-in-tax-income-lower-than-expected.html