Business

New Slovak government eyes tax, spending hikes, slow deficit reduction

Published

6 months ago

November 13, 2023

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New Slovak government eyes tax, spending hikes, slow deficit reduction

Slovakia’s new government plans to raise multiple taxes, including on banks, to fund pension and other spending rises and slowly cut the euro zone’s highest budget deficit under a programme approved by the cabinet on Monday.

Leftist Robert Fico became prime minister for the fourth time last month after winning an election in which he took aim at critical media, Western partners and liberal policies and pledged to end military support for Ukraine.

Fico, who has formed a coalition with smaller leftist and nationalist parties, plans to present the programme to parliament on Tuesday for a confidence vote in his government.

The programme promised a special tax on banking profits and measures to cut interest rates on mortgages. Special levies will be designed for excessive profits in other unspecified sectors.

The programme also set out plans for increasing tax levels for higher earners, on real estate — especially second and third homes — and on alcohol and tobacco. The government will also consider a tax on sweetened drinks.

The goal is to help fund a slow consolidation of the public budget as the budget gap is expected to be nearly 7% of gross domestic product.

“In 2024, the reduction of the general government deficit will amount to 0.5% of GDP, to ensure that the living standards of the population, which are among the lowest in the European Union, do not deteriorate further,” the programme said.

Despite the high deficits, the government pledged to establish an extra 13th month in pensions, above a small extra annual payment currently.

Social Affairs Minister Erik Tomas said the government would give a one-off 150-euro ($160) benefit to each pensioner this year.

Fico said at the weekend the government would give a tax break worth up to 1,800 euros to households whose saw their mortgage interest jump this year, and the government will cover some interest rate costs as of 2024.

The programme reiterated Fico’s pledge to halt Slovakia’s official military aid to Ukraine and seek a cessation of hostilities, while recognising Ukraine’s international borders.

It also reiterated opposition to an end of national veto rights of European Union member states, or a move towards majority voting in more areas.

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Business

Chinese firm aims to expand investments in Pakistan, shows interest in mining sector

Published

1 day ago

May 17, 2024

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Chinese firm aims to expand investments in Pakistan, shows interest in mining sector

A notable Chinese company has expressed keen interest in expanding its investment in Pakistan, in yet another sign of investor confidence boost in the leadership of Prime Minister Shehbaz Sharif.

A delegation from Chinese firm MCC Tongsin Resources led by its Chairman Wang Jaichen called on PM Shehbaz here on Friday.

The premier invited the Chinese company to invest in Pakistan’s mining sector and manufacturing of export goods.

Shehbaz assured the delegation that his government would extend all-out facilitation to the company from minerals exploration and processing to the export of goods.

The PM instructed the relevant federal ministers and officers to continue consultation with the Chinese firm, taking the Balochistan chief minister, provincial departments and stakeholders on board.

The delegates reposed trust in PM Shehbaz’s leadership, and expressed keen interest in enhancing their investment in Pakistan’s mining and minerals sectors.

The delegation briefed Prime Minister Shehbaz about the construction of a mineral park in Pakistan and their future investment plans.

The premier welcomed the Chinese firm and highlighted the priority steps by his government to promote foreign investment in Pakistan.

He said that being a time-tested friend, China supported Pakistan in every difficult hour for which the Pakistani nation was grateful to the leadership and people of China.

Federal ministers Ahad Khan Cheema, Dr Musaddik Malik, Rana Tanveer Hussain, Jam Kamal Khan and relevant senior officers attended the meeting.

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Business

Govt jacks up power price by Rs1.47 per unit

Published

1 day ago

May 17, 2024

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Govt jacks up power price by Rs1.47 per unit

The government on Friday increased the electricity tariff by Rs1.47 per unit.

According to Nepra sources, the collection from consumers will take place in August, September, and October.

The electricity companies had requested the funds as part of the third quarter adjustment for 2023-2024, seeking Rs 31.34 billion under capacity charges.

Sources said that Rs5.57 billion were requested for operation and maintenance costs, and Rs12.38 billion were requested for the transmission and distribution impact under monthly fuel cost adjustment.

Previously, Nepra had completed the hearing on the electricity companies’ request under the quarterly adjustment.

Nepra approved the Power Division’s request, allowing an increase of Rs 1.45 per unit in electricity prices.

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Business

Hong Kong allows China’s digital yuan to be used in local shops

Published

1 day ago

May 17, 2024

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Hong Kong allows China's digital yuan to be used in local shops

Hong Kong will allow mainland China’s pilot digital currency to be used in shops in the city, the head of its de facto central bank said on Friday, marking a step forward for Beijing’s efforts to internationalise the yuan amid rising geopolitical tensions.

The programme, backed by Beijing, will allow mainland Chinese and Hong Kong residents to open digital yuan wallets via a mobile app developed by China’s central bank and will permit them to make payments in retail shops and some online stores in Hong Kong and in mainland China.

Transactions using e-CNY, predominantly for domestic retail payments in China, hit 1.8 trillion yuan ($249.27 billion) as of end of June 2023, with 120 million digital wallets opened, according to the latest disclosure from China’s central bank.

Using the wallet, users can make payments at over 10 million merchants in 17 provinces and cities in the mainland.

Each wallet used in the city will be subject to a balance limit of 10,000 yuan, with single transactions and daily payments capped at 2,000 yuan and 5,000 yuan, respectively, officials from the Hong Kong Monetary Authority said.

Peer-to-peer transfers will not be allowed at the moment, according to the HKMA.

“By expanding the e-CNY pilot in Hong Kong .. users may now top up their wallets anytime, anywhere without having to open a mainland bank account, thereby facilitating merchant payments in the mainland by Hong Kong residents,” HKMA Chief Eddie Yue said.

Currently, users of other digital yuan wallets such as those operated by Ant Group and Tencent can make payments in the city.

Industrial and Commercial Bank of China, Bank of China Ltd, China Construction Bank Corp and Bank of Communications Co have been selected as e-CNY wallet operators.

The yuan’s use in global finance remains low, though it has shown steady increases.

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