Slovakian FinMin opposes Hungarian TriGranit project, plans to revoke tax break

TriGranit announced a mammoth EUR 1.5 billion, five-year project in October 2009 that would create Europe’s number one entertainment, commercial and conference centre outside Bratislava.“The EUR 1.5 bn investment will create more than 10,000 new job opportunities in its construction phase, which will last almost five years," TriGranit said in a statement. The facility is expected to generate some EUR 600 million in taxes for Slovakia annually. Slovakia granted a tax relief for the builders.

The Finance Minister said it is “absurd that the biggest companies pay the least (to state coffers). I don’t understand what made the previous administration grant that tax break."

According to the Slovakian daily, Mikos plans to submit a law amendment proposal that would allow revoking the tax concession, which would make the project more expensive.

Metropolis would be a multifunctional development, with retail, leisure, Aqua Park, golf, hotels, casinos, cultural and congress facilities. It is planned to be completed in 2015 and to begin operating mega-casinos by 2012.

Slovakia’s new government found fault with Robert Fico’s cabinet for granting tax breaks for casinos with annual turnover of over EUR 40 million. Under the relevant law, the qualified large casinos could expect their tax burdens to shrink as their revenues grow, while regular casinos are obliged to pay EUR 1,500 tax per gambling table.

Bratislava’s Hungarian-language daily Új Szó cited Minister of the Interior, Daniel Lipsic, as saying that it was a “crazy idea" to build Metropolis, adding that the previous government observed nothing else but business lobbies when it pushed through with the law modification.

In April, catholic bishops in Slovakia condemned moves by Nevada-based gambling company Harrah's Entertainment Inc to set up Europe's largest mega-casino complex on their country's border with Austria, at Jarovce, outside the capital city.

"Games of hazard are ethically questionable. They damage the person and society, and the economic benefits flowing from them are highly doubtful," said the bishops' conference in Slovakia. "Academic research proves gambling brings more negative than positive consequences. We need a change in the law."

Other opponents of the complex include Bratislava’s mayor, Andrej Durkovsky, who said last December they welcome developments in the entertainment, commercial and conference businesses, but they were opposing to have a casino in the complex, because it would only bring “organised crime, money laundering, drugs and gambling addiction" to the country.

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