Paying a card becomes a luxury. Slovak shops say no to terminals.

In Slovakia, the convenience of non-cash payments is becoming an expanding problem and for many consumers it is an additional cost. Implementation of a fresh financial transaction taxation to enter into force April 2025, caused a real storm and rebellion among traders. Although it was officially intended to impose only on entrepreneurs, in practice its effects are almost entirely passed on to customers. Shops, service points and catering facilities are massively giving up terminals, adding additional fees or straight encouraging cash. The opposition calls it "the dumbest taxation in the country's history", and experts inform against a wave of inflation and a decline in economical competitiveness.

A fresh taxation – who truly pays for it?

According to the Slovak Government, the fresh taxation is to cover any financial transaction in which the money is paid from the account. This applies not only to transfers or withdrawals from ATMs, but besides to all payments made through debit and credit cards. Formally, the burden of paying the tribute lies with companies – sellers and service providers who accept specified payments.

However, marketplace logic proved merciless. Entrepreneurs, not wanting to take on another financial burden, have found ways to transfer this cost straight to consumers. As a result, customers pay for the government's plan to consolidate public finances. This mechanism, although predictable for economists, in practice has become a origin of regular difficulties and expanding annoyance for both buyers and sellers who have been in the mediate of this taxation turmoil.

Resistance of traders and return to cash

Slovakia's consequence to the fresh government was immediate and firm. In the full country, it is possible to see phenomena that seemed unthinkable a fewer months ago in the modern European economy. Trade and services resist, and its forms vary widely:

• Additional fees for card payment: This is the simplest and most direct way to pass on costs. According to the Slovak media, any points, especially in Bratislava, began charging advanced fees for non-cash transactions. frequently it is not just about covering the cost of the taxation itself, but about deliberately discouraging customers to usage terminals.
• Hidden price increases: Another group of entrepreneurs, wishing to avoid an open conflict with the client at the cash register, decided to include a fresh tribute in the price of their products and services. As a result, all customers, including those who pay cash, pay more, although they are not always aware of it.
• Promotion of cash: In many shops and restaurants there were signs asking for bills to be regulated in cash. To encourage this form of payment, owners offer attractive discounts, up to 10 percent. It is simply a clear signal that for an entrepreneur to bypass the non-cash strategy is worth giving part of his profit.
• "Technical problems" and cancellation of terminals: More and more customers meet with information about the alleged terminal failure. In fact, this is frequently an excuse, for which there is simply a reluctance to bear the costs of a fresh tribute. The utmost but increasingly frequently considered step is to quit the payment terminal, which for many tiny companies may be the only way to keep profitability.

Political storm and expert warnings

The fresh taxation has become 1 of the main topics of public and political debate in Slovakia. Michal Šimečka, president of the opposition organization Progressive Slovakia, he did not dress up in words, setting a fresh tribute as "the dumbest taxation in the past of the country". He argued that he was hitting the advancement of civilization, hindering citizens' lives and harming the economy.

Critic voices besides flow from business circles and economical experts. Entrepreneurs inform that fresh regulations straight limit the competitiveness of the Slovak economy. At a time erstwhile another countries are trying to attract capital by simplifying the taxation strategy and promoting innovation, Slovakia introduces a regulation that can be effective discourage investment.

Experts besides point to serious risk of inflation growth. The shift of taxation costs to consumers through price increases is simply a pro-inflationary mechanism. This could weaken the purchasing power of society and negatively affect citizens' regular spending, leading to a slowdown in consumption, which is 1 of the driving forces of the economy.

Government counts profits and citizens counts losses

Meanwhile, the Slovak government seems unmoved by the wave of criticism and hopes for solid budgetary influence. According to authoritative forecasts, 2025 taxation is to bring around EUR 500 million. Next year, 2026, the influence is to increase until EUR 700 million. These measures are part of a larger plan to consolidate public finances aimed at reducing the national budget deficit.

However, the price for this consolidation may prove to be highly high. The introduction of a tax, which in essence punishes for modernity and convenience, may take Slovakia back years in the improvement of non-cash payments. alternatively of promoting transparency and limiting the grey zone, the government inadvertently encourages return to cash transactions that are much more hard to monitor. regular life in Slovak shops and premises is already becoming more hard and the balance of profits and losses for the full economy and society seems increasingly unfavourable. The past of the Slovak taxation becomes a informing to another countries, as the budget gap should not be patched at the expense of advancement and convenience of citizens.