The Slovenia Times

Finally Decision About Real Estate Tax?

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DeSUS proposes gradually phasing in the tax so that the tax base would increase from 60% of the property's generalised value in 2014 to 80% in 2015 and full amount in 2016.

The current government proposal envisages reducing the base for taxation to 85% only in the first year, so that any discrepancies and mistakes in the real estate registry can be eliminated.

Data on the financial impact of DeSUS's proposal is not yet available, but PM Alenka Bratušek has said the proposed break in 2014 would practically mean "a complete loss of budget revenue from that source".

While the real estate tax is to net EUR 390-395m a year, half of which will go to local communities, unofficial estimates suggest gradual phasing in would mean a loss of EUR 70m in 2014 and EUR 40m in 2015.

Coalition parters have urged DeSUS to say how it intends to make up for the loss in revenue, while they also raised the question whether the concession would apply to everyone as indicated by DeSUS leader Karl Erjavec.

Erjavec is expected to present answers and a concrete proposal to colleagues from the other three coalition partners at the regular Monday morning meeting hosted by PM Bratušek.

The expectation is that the coalition tries to negotiate the tax base rates in the first two years, which could be set higher than those proposed by DeSUS.

Bratušek has often repeated that the real estate tax is absolutely necessary unless social transfers or public pay are to be affected.

Last week coalition partners also indicated that the unpopular bill should be endorsed by all members of the coalition or not passed at all.

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