Slovak companies criticize new tax package

Robert Fico, Prime Minister of Slovakia (European Council, CC BY-NC-ND)

Ukrainian GDP growth expected at 2.9 per cent

Hungarian T-bill yields dropped further

Latvian-Estonian high-voltage power line route approved

Slovakia

„The new tax package, recently presented by the government of Robert Fico, will have a negative impact on the business environment in Slovakia,” the representatives of the Slovak Chamber of Trade and Industry (SOPK) and Club 500 informed at a press conference. They claim it will have a negative effect of EUR350m annually on the Slovak business environment. As Slovak Republic reports, the Finance Ministry responded there’s no need to worry.

The tax package includes:

  • a proposal to introduce a tax on dividends;
  • to increase the excise tax on tobacco;
  • special deductions in regulated sectors;
  • fees for gambling activities.

The Slovak Spectator informs that the government has come up with new taxes when its tax incomes are increasing. The revenue from taxes in 2015 was up by EUR1.3bn compared to original estimates. The tax collection further improved by EUR310m in the period January – July 2016.

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Ukraine

Experts changed Ukraine’s growth forecast for 2017. Previously they expected 2.5 per cent of GDP growth. Now they say the growth will accelerate up to 2.9 per cent. The inflation rate should be 9 per cent.

According to the forecast published by the Ukrainian Economic Development and Trade Ministry, in 2016 the GDP growth will be1 per cent slower than expected (earlier forecast was 1.1 per cent). The inflation rate will be 13.1 per cent (earlier forecast was 13.5 per cent). 

Interfax informs the data is „based on the materials provided by experts from 16 various organizations and companies, particularly, the Ministry of Economic Development and Trade, the National Bank of Ukraine (NBU), the Institute for Economics and Forecasting of the National Academy of Science of Ukraine, the Institute for Economic Research and Policy Consulting, the International Centre for Policy Studies (ICPS), Raiffeisen Bank Aval, Dragon Capital investment company and CASE Ukraine”.

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Hungary

The Budapest Business Journal informs Hungary’s Government Debt Management Agency (ÁKK) has managed to sell HUF20bn (EUR64m) worth of 3-month discount Treasury bonds at its weekly auction on August 23rd.  „Yields dropped further, with 0.4 per cent the highest rate the state will pay to investors. Primary dealers placed HUF49.1bn worth of bids on the HUF20bn lot at today’s auction, and the issuer allotted the original amount on offer,” BBJ writes.

The average yield was 0.39 per cent.

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Latvia

The Latvian-Estonian project envisages construction of a 330 kilovolt (kV) single-circuit power line along the Rail Baltica railroad. It will be 180 kilometers long. The project should be completed by 2020.

The approved route goes through eleven regions in Latvia: Rujiena, Mazsalaca, Aloja, Limbazi, Seja, Garkalne, Stopini, Incukalns, Ropazi, Salaspils and Burtnieki. As Baltic Course informs, Latvian government also approved giving the third Estonian-Latvian 330 kV interconnection the status of national importance.

 The total cost of the project will reach EUR100m. 65 per cent of the funding will come from the Connecting Europe Facility.

„The third Estonian-Latvian 330 kV interconnection will improve power supply security in the Baltic region, more effective power market operations in the Baltics, and improve competitiveness of the Baltic countries. The new interconnection will also achieve higher power throughput between Estonian and Latvian power networks and improve Latvian consumers’ access to cheaper electric power from Scandinavian countries,” Baltic Course informs.

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What’s up in indexes

BUX (of Budapest) increased from 27572.95 index points Monday, August 22nd to 27723.68 index points Tuesday, August 23rd. So it’s up 0.55 per cent d/d. From year-end it’s up 15.90 per cent.

BET (of Bucharest Stock Exchange) increased from 6874.44 index points Monday, August 22nd to 6895.87 index points Tuesday, August 23rd. So it’s up 0.31 per cent d/d. From year-end it dropped by 1.52 per cent.

PX (of Prague Stock Exchange) was up 0.52 per cent – increasing from 846.29 index points Monday, August 22nd to 850.72 index points Tuesday, August 23rd. From year-end it dropped by 11.04 per cent.

WIG20 (of Warsaw) dropped by 0.54 per cent d/d and by 3.69 per cent from year-end. It decreased from 1800.34 index points Monday, August 22nd to 1790.60 index points Tuesday, August 23rd.

OMXT (of Tallinn) increased from 995.72 index points Monday, August 22nd to 998.34 index points Tuesday, August 23rd. So it’s up 0.26 per cent d/d. From year-end it’s up 11.05 per cent. 

OMXR (of Riga) was up 0.76 per cent d/d – increasing from 641.53 index points Monday, August 22nd to 646.38 index points Tuesday, August 23rd. From year-end it’s up 8.75 per cent.

OMXV (of Vilnius) dropped by 0.01 per cent – falling from 536.88 index points Monday, August 22nd to 536.84 index points Tuesday, August 23rd. From year-end it’s up 10.46 per cent.

SAX (of Bratislava) was up 0.17 per cent d/d and up 7.32 per cent from year-end. The index increased from 313.23 index points Monday, August 22nd to 313.76 index points Tuesday, August 23rd.

SOFIX (of Sofia) dropped by 0.11 per cent – falling from 470.56 index points Monday, August 22nd to 470.03 index points Tuesday, August 23rd. From year-end it’s up 1.98 per cent.

UX (of Kyiv) dropped by 0.17 per cent – falling from 693.53 index points Monday, August 22nd to 692.33 index points Tuesday, August 23rd. From year-end it’s up 0.94 per cent.

CROBEX (of Zagreb) increased from 1795.36 index points Monday, August 22nd to 1799.00 index points Tuesday, August 23rd. So it’s up 0.25 per cent d/d. From year-end it’s up 6.53 per cent.

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