The Slovenia Times

Middle class tax cut confirmed

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Under the amendments to the fiscal consolidation act, the threshold for the 41% bracket will rise by slightly over 1,000 euros to EUR 20,400 gross, but only for a period of two years.

On average earners in this group will see their taxes drop by about EUR 200 per year.

Finance Ministry State Secretary Mateja Vraničar said the tax cut would affect almost 115,000 taxpayers.

At the same time the 50% tax bracket, which kicks in at just under EUR 71,000 and was introduced in 2013, will remain in place for another two years.

The tax tweaks had received a mixed response.

Trade unions have praised the move, hopeful that this signals the government's intention to reduce the progression of the tax scale.

Business on the other hand argued that it is not far-reaching enough to actually reduce the tax wedge on the most productive population.

This was reflected in parliament today, as the United Left (ZL) was joined in challenging the motion by the conservative New Slovenia (NSi).

The tax changes will enter into effect on 1 January.

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