The Slovenia Times

Minister for the Economy Against VAT Raise

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Opposed to raising any tax, Stepišnik believes a rise in VAT would not hit exporters so much as it would ordinary citizens because retailers would rise prices instead of cutting margins.

A rise from 20% to 22% is being mentioned, whereas the lower, 8.5% VAT would not change. Finance Minister Uroš Čufer has recently said that a rise in VAT was becoming increasingly likely.

Should this happen, people would spend less, which would translate into a drop in budgetary VAT revenues, said Stepišnik.

He believes Slovenian citizens should be instead encouraged to spend some of their EUR 15 billion in bank deposits on investments to improve the energy efficiency of their housing.

"If people were somehow persuaded to do so, they would have lower energy bills by a fourth in the long-run, and small construction businesses around the entire country would get work."

Stepišnik has recently upset the public by suggesting it would be wise to reach agreement with the public sector to pay salaries exceeding EUR 1,500 per month in special one-year bonds.

He now explained to Večer that this would be an ideal way of improving the public finances, and could be applied to all employees, not just those in the public sector.

Touching on insolvency and bankruptcy legislation, the minister said it should be changed so as to limit the control bad owners have of their company.

He believes the role of boards of creditors should be strengthened to involve them into crisis management, whereas banks should transfer their claims into ownership stakes in order to strengthen the company's capital structure.
 

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