The Slovenia Times

Higher VAT Unofficially Included in Reform Plan


Parliament is expected to receive the draft reform plan for 2013 and 2014 on Wednesday or Thursday after the government was briefed on the document on Tuesday. Some information indicates the document will be discussed by parliament's working bodies on Friday.

The concrete nature of the measures contained in the document remains unknown, but it is clear is they deal with the fiscal situation, the fixing of the banking sector, privatisation, measures to kick-start the economy and to rescue over-indebted companies.

Unofficial information has it that the measures would also touch on allowances that come with pensions. Both VAT rates are to be increased - the basic one by 1-2 percentage points and the lower by half of that amount.

Unofficially, the plans include taxation of those who have their money stashed in tax heavens, as well as some other taxes, including tax on sugary drinks.

Some unofficial information suggests energy company Petrol and insurer Zavarovalnica Triglav are slated for privatisation.

Head of the deputy group of the coalition Social Democrats (SD) MatjaĆŸ Han said today that he had not received the reform plan yet and did not know what was in it, but he said that the SD had proposed introducing real estate tax.

Han also broached the issue of a potential reduction in the number of municipalities but he did not know whether the measure was actually listed in the draft reform plan. The measure would require a legislative adjustment and agreement with institutions in charge.

The draft reform plan is to be discussed by parliamentary parties on Thursday, and on Friday by the Economic and Social Council, an industrial relations forum.

The coalition is set to finalise and present the document at a meeting planned for 6 May, after which the government will adopt the document and send it to the European Commission along with the stability programme.


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