Tax laws and regulations are not autonomous or outside the constitutional framework. Planned tax amendments should comply with the constitution and new burdens cannot be justified merely by the need to fill state coffers.
At the end of the last decade, the government often justified tax hikes by economic hardship and the need to bring the country out of crisis, but such hasty proceedings are no longer acceptable. Taxpayers demand a certain level of sound reasoning for any last-minute tax increases intended to boost government revenue.
The state’s need of money cannot in itself serve as a basis for arbitrary and disproportionate increases in the tax or administrative burden without an impact analysis. The end of the last year brought a series of positive developments for those who believe that the state should also follow the constitution in its dealings, including tax matters. The Supreme Court repealed a Government regulation which increased environmental charges contrary to a previous agreement and the President refused to sign VAT law amendments which included a requirement for all businesses to separately declare invoices exceeding EUR 1000. In both cases, the government’s intention to improve its fiscal position while trampling on the constitutional rights of taxpayers was sharply rejected. Our law firm is pleased to have significantly contributed to both cases.
Institutional support is strong for the notion that the state budget is not above the constitution and that government initiatives to increase the tax burden must be in line with constitutional principles. This inspires us to continue the fight for free enterprise.