7

VAT
As of 1 July 2013, the government intends to rise the general VAT rate from 20% to 22% and the lower rate of 8.5% to 9.5%.

The measure is expected to bring into the national budget EUR 250m annually.

Real estate tax
As of 2014, the government intends to overhaul the taxation of real estate by introducing a new new real estate tax.

The tax would replace the tax on the use of building land, the property tax and the fee for the maintenance of forest roads.

The state and municipalities would each get half of the revenues collected with the new tax.

The annual revenues from this permanent measure are estimated at EUR 240m.

Corporate income tax
As of 2014, the corporate income tax, which was to drop to 15% by 2015 under the existing legislation, will be fixed at 17%.

The new measure is to bring into the budget EUR 22m annually.

Lottery ticket tax
As of 1 August 2013, the government intends to impose a new, 10% tax on every lottery ticket sold.

This new measure is estimated to bring in EUR 17m annually.

Tax on non-alcoholic beverages
As of 1 August 2013, the government intends to introduce a new tax on non-alcoholic beverages with or without added sugar.

The beverages will be taxed progressively, depending on the amount of sugar they contain.

The tax would bring in EUR 11-14m annually, depending on whether it would be imposed also on juices.

Court fees
As of 1 July 2013, the government intends to raise court fees, hoping to get EUR 13m into the budget annually.

Heath insurance
As of 1 July, the government intends to expand the range of incomes from which contributions for health care are paid.

The measure could bring in EUR 93m annually. However, its financial effect has not yet been included into the planned revenues because it is as yet unclear how exactly it would be calculated.

Crisis tax
While still in talks with trade unions to cut the public sector wage bill, the government will opt for a new crisis tax on income if no consensus is reached to cut public spending.

In this case, the tax would be introduced on 1 January 2014 for one year, and would bring in EUR 300m.

Of all the new taxes the government is planning, only this one would be limited in time.

To achieve the goal of pushing the deficit below 3% of GDP by 2014 a restrictive policy will continue in virtually all areas. Public spending is to be reduced to 46.7% of GDP by the end of the programme period.

Cutting the public sector wage bill
Talks with public sector trade unions on cutting the wage bill are ongoing, with the government deadline expiring today. Planned financial effects remain set at EUR 158m, but the state will have to find additional resources to pay the full amount of last year's holiday bonus and a potential payout of raises agreed as part of the public sector pay reform.

The government will also continue its attrition policy to reduce the number of employees in the entire public sector by 1% every year, while EUR 130m in savings was generated by the austerity law passed last year.

Lower unemployment benefits
Funds earmarked for social transfers to individuals and households are planned in line with the 2013 budget. This will be achieved by cutting unemployment allowances by 3% while setting a ceiling for maternity allowance to two times the average monthly wage in Slovenia.

The measures will come into effect in July and are expected to save EUR 17m.

The government also plans that active employment policies will reduce the number of people entitled to unemployment benefits and other forms of support.

Pensions will not be adjusted
The 2012 austerity law has already generated EUR 65m in savings as it cut recreation allowance for some pensioners, but further measures will be required to stabilise the pension purse in 2013, especially due to more people entering retirement and a EUR 42.7m hole in the pension purse as a result of the decision of the Constitutional Court to annul some pension cuts.

Additional funds for the pension purse will be secured through the KAD fund, which annually contributes EUR 50m, while this year's budget implementation law envisages an additional EUR 70m one-off payment. The funds are expected to come from the sale of state stakes in companies.

Measures in healthcare
The government intends to expand the range of income from which contributions for health care are paid, equalise different categories of insurance holders based on extent of rights and the current contribution level and by setting a minimum contribution for the self employed.

Limiting the investment framework by EUR 100m
The supplementary budget for 2013 is to impose additional limits on expenses for goods and services to save EUR 22.6m, while EUR 15m will be earmarked for liquid assets of public agencies.

The framework of spending on investment in the supplementary budget will be cut by at least EUR 100m compared to the current budget; EUR 50m are to be saved in investment expenditure and EUR 50m in investment transfers.