SLOVAK Rep.: Increasing insurance taxation is raising hauliers' discontent

The Slovak government's decision to extend the 8% tax, previously applied only to the MTPL insurance premiums, to all the facultative non-life insurance lines has raised not only insurers' discontent, but also a negative reaction of CESMAD - the Association of Road Transport Operators of the Slovak Republic. In short, Slovak hauliers blame the recent change in taxation for the sharp increase in the mandatory motor insurance prices.

In fact, insurers themselves have estimated that the extended tax will lead to an about 12% increase in the non-life insurance policies' prices, to cover the new duty. Some insurance companies have already significantly increased the mandatory motor insurance tariffs. According to CESMAD representatives, the prices went up by 100 - 300%, "negatively impact the business of hauliers who already are in a critical situation."

The decision of insurance companies is unfair as they failed to warn the hauliers in advance. As a result, they had only a minimal chance to respond to the current situation, CESMAD representatives said to the press.

Thus CESMAD has called on the government to liberalize the mandatory motor insurance market, offering the possibility to purchase MTPL at lower prices from foreign providers. Another solution taken into consideration would be to create hauliers' own insurance company in cooperation with the association's partners.

"The tax and payroll tax burden of Slovak hauliers is the second highest in Europe, and after the increase it will achieve 60%," CESMAD representatives warned, as quoted by SITA. They have also emphasized that trucks caused only 3.7% of all accidents in Slovakia last year.

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