Slovakia, the most progresive reform country, has started to assume the role of a pioneer among the EU accession candidates. It is pushing to wrap up the outstanding reforms before 2006 and is not afraid to take bold steps, like introducing a flat tax, to achieve this aim.
On June 5, 2003 the government approved a plan for a 2004-2006 tax reform. It calls for a single rate of 19% from 2004 onwards for corporate tax as well as income tax and value-added tax.
In its May 7th report, the International Monetary Fund said a step-by-step introduction of the tax reform would be a more reliable way and reduce the risk of revenue shortfalls. Slovakia's will to reform is impressive and is to be welcomed, but the suspense is unabated about whether all its experiments will actually succeed.