The Slovenia Times

Government seeking revenue-neutral tax changes


Finance Minister DuĊĦan Mramor said Friday extensive consultations with business and trade unions would be held before the blueprint is unveiled in the summer.

The ministry last year proposed a mini tax reform that was promptly shot down by stakeholders as being too complicated while at the same time ineffective.

It has now finalised an analysis of the tax code to determine "which changes really benefit business and which do not," Mramor said.

The analysis shows that Slovenia has a competitive tax system but taxes higher wages excessively.

"We have problems when it comes to professionals, engineers," Mramor acknowledged.

The treasury will therefore aim to cut taxes on labour by EUR 60-90m but plans to offset that with other revenue.

Slovenia must gradually reduce the budget deficit, which cannot be achieved with lower taxes. Instead, taxes need to be restructured, he said.

The direction of the changes will be determined by social partners, who "know best what our competitive advantages and disadvantages are." Only then will coalition partners be consulted.


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