Ethnic Hungarian Settlements in Slovakia Lose Hundreds of Millions of Euros in State Tax Revenue Due to Unusual Disbursement Policy

Hundreds of millions of euros worth of state tax revenue has been lost, and promises to be lost, to southern Slovakia, including Hungarian-inhabited settlements, due to the disproportionate funding of local governments, said Péter Őry chairman of the Hungarian Community Party at a news conference on January 28. The disadvantage stems from the distribution mechanism used to return the share of taxes on natural persons to municipalities. 

When calculating the tax revenue to be returned, the State takes into consideration not only the locality’s size, but also their altitude. Accordingly, those settlements located in the south – west part of the country receive less. This negative discrimination affects some 1,600 settlements in Slovakia, including all but a dozen and half of those inhabited by ethnic Hungarians, 512 in total. “This altitude distribution method, at least at the European level is completely unique, and at the same time discriminatory, and as such needs to be changed,” said Őry. 

Should the current distribution system remain, the disparity between regions would only widen further.


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