Matovic wants to tax gratuities and shine a light on the Schwartz system – CT24 – Czech Television

Newly, the bill for food and beverage consumption would include a tip of nine percent of the final price excluding VAT. According to Matovič, the customer could decide that he does not want to pay the tip. The proposal assumes that the selected tips will be budgeted in the salaries of employees so that their official income will increase. At the same time, restaurant services would be subject to a 10% VAT rate, which is currently twice as high.

Representatives of the gastronomic sector have long demanded a lower VAT rate, which according to them is the highest in the region in Slovakia.

Matovic’s proposal is part of a planned tax reform, for which the Ministry of Finance has so far published only basic information. For example, it expects a reduction in the corporate income tax rate to nineteen of the current, usually 21 percent, higher financial support for families with children and a slight increase in employees’ net wages, including the abolition of various tax exemptions and mandatory contributions.

According to Matovič, self-employed persons do not participate in the running of the state as regular employees

Matovič also announced a plan to reduce the tax and levy advantages of some self-employed persons over employees. He claimed that employees pay the state, on average, four times more per year in income tax and compulsory contributions than the average for self-employed persons.

“Those who finance the running of the state are employees, self-employed persons contribute financially to the running of the state with a miniature fraction. I have no conscience to want huge taxes and levies from employees when we have such a hole in the system, “said Matovič.

According to the minister, many people only work formally and actually do the same work and under similar working conditions as employees. He also said that the state did not have the capacity to control the so-called Schwartz system, ie employment on a trade license. Newly, self-employed people could choose whether to pay a flat fee of 29 percent of income or claim expenses and then pay levies and then income tax on gross profit. According to him, self-employed persons should continue to be given an advantage in comparison with employees in connection with the payment of taxes and levies.

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