Speaking during questions time in parliament, the PM noted that the tax system had undergone many changes in the past.

The result is a very complex and opaque system that does not enable equal and fair distribution of the tax burden, he said.

The administrative costs are also "extremely high", he added.

To change this and bring the tax system in line with modern development of tax systems, the government will focus on expanding the tax base and reducing the number of exemptions.

The changes will enable stable and predictable budget revenue. By cutting red tape and restructuring the tax burdens, the government will strive to boost competitiveness, according to him.

The changes will also do away with anomalies and prevent tax avoidance, Cerar said in answering a question by SocDem MP Andreja Katič.