1. Ivan MiklošOktóber 2007 Slovakia: A story of reforms

2. GDP in %199819992000200120022003200420052006 Public expenditures45,347,251,743,3 40,337,838,037,3 Tax quota II35,734,333,031,632,031,130,029,5 Balance of public finances-4,8-6,4-11,8-6,5-7,7-2,7-2,4-2,8-3,4 Gross public debt34,047,249,949,243,342,441,534,530,7

3. in %20022003200420052006 GDP growth4,14,25,468,3 Inflation 3,38,57,52,74,5 Unemployment rate18,517,418,116,213,3 Employment growth0,21,80,32,13,8 Real labor productivity growth 4,72,35,84,76,0 Current account balance of payments-7,9-0,9-3,4-8,5 -8,3

5. Comparison of old and new tax system

7. Income tax of individuals and dividend tax in EU countries

8. (ESA95, in % HDP)200320042005200620072008 Direct taxes6,77%5,71%5,68%5,69%5,65%5,69% Income tax – individuals3,24%2,69%2,67%2,58%2,55%2,61% Income tax – corporate2,78%2,61%2,75%2,81% Tax collected through withholding0,75%0,42%0,26%0,30%0,29%0,27% Indirect taxes12,04%12,23%12,59%11,43%11,35%10,98% VAT7,53%7,80%7,94%7,58%7,25%7,13% Consumption taxes3,15%3,33%3,70%2,95%3,27%3,06% Property taxes0,51%0,50%0,48%0,41%0,38%0,35% Local taxes0,50%0,45%0,43% 0,41%0,38% Other taxes0,35%0,15%0,04%0,06%0,05% Total tax income18,81%17,94%18,27%17,12%17,00%16,67% Tax income in 2003 - 2007, in % GDP, ESA 95

9. (ESA95, in thousands of SKK)200320042005200620072008 Direct taxes82 12277 42083 56993 118102 887113 104 Income tax - individuals39 29036 44239 21142 29046 53351 947 Income tax – corporate33 68835 30640 50545 96951 12955 840 Tax collected through withholding9 1445 6713 8524 8595 2255 317 Indirect taxes146 025165 767185 248187 089206 874218 333 VAT91 323105 650116 880124 102132 202141 806 Consumption taxes38 19645 16854 36048 29059 53060 945 Property taxes6 1716 8187 0606 7196 9007 050 Local taxes6 0316 1546 3576 9817 4007 625 Other taxes4 3041 978591997842907 Total tax income228 147243 187268 816280 207309 761331 437 Tax income in 2003 – 2007, in thousands of SKK, ESA 95

12. in %199819992000200120022003200420052006 Unemployment rate12,616,418,819,218,517,418,116,213,3 Employment growth-0,4-2,7-1,80,60,21,80,32,13,8 Unemployment development and employment growth in Slovakia in 1998 – 2006

13. GDP growth Employment growth Portion of R&D on GDP Tax quota II Soc. Exp./ GDP ALMP/ GDP ALMP/ Unemp. Exp. Germany0,9-0,346,840,229,50,8524,7 France1,60,353,845,831,20,7327,0 Belgium1,90,449,947,729,30,9225,9 Austria1,90,149,943,629,10,4321,6 average1,60,150,144,329,80,7324,8 Poland4,0-0,243,334,220 Czech republic 4,40,344,136,319,60,1325,8 Hungary4,30,249,938,620,70,2130,1 Slovenia4,00,547,240,724,3 average4,20,246,137,521,20,1728,0 Great Britain 2,50,944,738,526,30,1620,0 Ireland5,12,934,132,2170,4930,9 Average3,51,439,435,421,70,3633,2 Estonia9,01,233,231,013,40,0417,2 Latvia7,91,933,629,213,30,1550,2 Lithuania9,01,536,029,612,6 Average8,61,534,329,913,10,1033,7 Slovakia5,61,137,129,517,20,0715,2 Comparison of groups of countries