Slovakia to abolish transaction tax in 2027

Slovak Prime Minister Robert Fico has announced plans to abolish the controversial transaction tax, effective January 1, 2027. He has instructed Finance Minister Ladislav Kamenický and State Secretary Radovan Majerský to prepare the necessary legislative and technical measures for the repeal.

The tax, which was part of a fiscal consolidation package and implemented in April 2025, has faced intense criticism from businesses, employers, and opposition parties. It applied a 0.4 percent rate on outgoing bank transfers (capped at 40 euros per transaction) and a 0.8 percent rate on cash withdrawals. While self-employed individuals were exempted starting in January 2026, legal entities remained subject to the levy.

While both coalition and opposition parties have welcomed the decision, the opposition has criticized the timing, arguing the tax should be abolished immediately rather than waiting until 2027. A significant challenge remains in addressing the projected revenue loss, estimated to be between 400 and 450 million euros, as the government has not yet identified a replacement for these funds.