How high should be the personal allowance?

(Phillip Ingham, CC BY-ND)

Moldavian Prime Minister Valeriu Strelet out of office.

Retail sales grow in Estonia.

The chief of Sofia's election commission had to step down.

Who's on Hungarian tax authority's blacklist?


A debate over a personal allowance in Poland is still on, even after the election. Rising a level of a tax free personal allowance was one of campaign promises by Law and Justice. But the Constitutional Tribunal states that the personal allowance idea in the current form is unconstitutional.

Poland has one of the lowest personal allowance in Europe. In most countries the income tax is a progressive one. And everyone has a tax free personal allowance.

The levels of the taxable income vary. In Poland it’s PLN3,091 which is approx. EUR723. In the UK it is: GBP10,600 (approx. EUR12,000). In Bulgaria and Hungary it is zero In Croatia: HRK2600. In Slovak Republic it is more complicated: “all taxpayers, including nonresidents, are entitled to a personal allowance. Taxpayers whose tax base for the calendar year does not exceed 100 times the subsistence minimum (EUR19,809 for 2015), can deduct a non-taxable amount equal to 19.2 times the subsistence minimum per taxpayer EUR3,803.32 for 2015)”, states EY “Worldwide Personal Tax Guide 2015-2016”.



Moldavian Prime Minister Valeriu Strelet and his government received non-confidence vote on October 29th, 2015. Sixty five (of one hundred and one) deputies voted against his ruling. He was the third prime minister in the country in 2015. He is a member of Liberal Democratic Party that forms the ruling coalition – the Alliance for European Integration III (that also includes Democratic Party and Liberal Party).

The motion of non-confidence was proposed by the opposing parties (Comunist Party and Socialists Party). And some deputies from the ruling coalition have backed it.  In the shade of dismissing the government is a corruption scandal. Vlad Filat, the leader of Liberal Democratic Party and the former Prime Minister (2009-2013) was arrested in the mid-October and accused of taking bribes of USD260m. And it seems this is only a part of a fraud “in which up to USD1.5bn went missing from three banks ahead of elections in 2014” – CTVNEWS reports. Moldova signed an association agreement with EU in 2014.



In September 2015 the retail sales grew by 9 per cent y/y – Statistics Estonia reports. The sales were approx. EUR422m total, which means EUR322 per inhabitant.

The growth of sale of particular goods:

  • manufactured goods were up by 17 per cent,
  • other specialized stores (computers and accessories, stationery, books, sports equipment, games and toys) were up 42 per cent,
  • second-hand goods and non-store retail sale (stalls, markets, direct sale) went up by 38 per cent,
  • sales via Internet grew by 37 per cent.

“The turnover of retail trade enterprises was EUR498.3m, out of which the sales of goods accounted for 85 per cent”, Baltic Course writes. Also in in May, June, July and August the sales were steadily increasing 8-9 per cent y/y.



Dilyana Ivanov, the chief of the municipal election commission,  was asked to resign because of the problems with the ballot processing (forcing hundreds of people to stay in the Arena Armeec sports hall where the ballots were being counted) after the election. The Prime Minister Boyko Borisov also demanded the whole Central Election Commission to resign. But the members of the body refused to do so. “At the Arena Armeec sports hall in Sofia, about a dozen people were taken to hospital between Sunday evening and Tuesday, with several of them having fainted as they didn’t stand the pressure of being locked up amid unprecedented delays in the delivery of ballots and huge queues of people from district election commissions waiting to submit their protocols”, writes



Almost 3,600 private taxpayers (and self-employed individuals) and 3,100 companies are delayed with due taxes. The Hungarian tax authority NAV has just revealed that private taxpayers have approx. HUF20m in back taxes (at least 180 days overdue), and companies owe the country approx. HUF100m. The main “debtor” is Zhou Tejiao, the owner of San & M Kft (the company does not exist anymore) with outstanding payments of HUF13.6bn.


What’s up in indexes?

Warsaw’s WIG is lost 2.20 per cent – it’s the biggest drop since July. The other indexes changed a little.

BUX (of Budapest) lost 0.54 per cent on Thursday, October 29th. It decreased from 22064.52 index points Wednesday to 21946.00 index points Thursday. From year-end it’s up 31.93 index points.

BET (of Bucharest) gained 0.84 per cent – climbing from 7095.93 Wednesday to 7155.40 Thursday. From year-end it’s up 1.02 per cent.

PX was down 0.19 per cent on Thursday with 979.47 index points compared with Tuesday’s result of 981.35 index points (on Wednesday the bourse was closed). From year-end it’s up 3.46 per cent.

WIG20 (of Warsaw) dropped by 2.20 per cent – it ended at 2059.34 index points. The day before it was 2105.63 index points. From year-end it lost 11.08 per cent.

OMXT was up 0.07 per cent with 862.71 index points. On Wednesday it was 862.11 index points. From year-end it’s up 14.26 per cent.

OMXR (of Riga) increased from 587.84 index points Wednesday to 590.84 index point Thursday. It’s up 0.51 per cent d/d and 44.80 per cent from year-end.

OMXV (of Vilnius) grew by 0.06 per cent climbing to 479.42 index points (from the Wednesday’s level of 479.13 index points). And from year-end it’s up 5.97 per cent.

SAX (of Bratislava) stood flat at 284.21 index points – ending with 0.00 per cent change. From year-end it’s up 27.84 per cent.

SOFIX (of Sofia) grew by 0.60 per cent – from 444.07 index points on Wednesday to 446.75 index points on Thursday. From year-end it lost 14.43 per cent.

UX (of Kyiv) gained 0.55 per cent. It increased from 793.61 index points to 798.01 index points (Thursday). But from year-end it’s still below the line – it lost 22.77 per cent.

CROBEX (of Zagreb Stock Exchange) fell by 0.10 per cent to 1718.51 index points from 1720.16 index points Wednesday.

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