Finance says time to lower VAT rate back to pre-crisis levels
The VAT rate was raised from 20% to 22% in the term of Alenka Bratušek (2013-2014). Although it was a crisis measure, the government of Miro Cerar did not lower in a period of exceptional economic growth.
Croatian Finance Minister Zdravko Marić has announced that Croatia will decrease its VAT rate from 25% to 24%, and the country will also reduce personal income tax rates.
The only thing that makes sense is that Croatians get more money. This would be achieved with a combination of two measures - a lower VAT rate and, consequently, lower prices, and lower personal income tax rate, which has an immediate effect on the wallet.
Turning to Slovenia, the paper notes that Slovenia has no budget surplus after it pays interest, which is why there is little wiggle room.
A decision should probably have to be made about how to increase the citizens' purchase power. As it is complicated to make tax changes which would result in a higher net wage, perhaps politicians should start thinking about lowering the VAT rate.
"It does not have to be lowered by two percentage points. We would be satisfied with one. I repeat, they were convincing us that it was a crisis measure when it was introduced," concludes the commentary.