NSi warning against changes to new income tax reform

Ljubljana – The opposition New Slovenia (NSi) has warned against changing the income tax act introduced in March under the previous government, saying that the reform is already bringing results. “Everyone is relaxed, businesses are investing, consumption has increased and this is reflected in budget revenue,” NSi MP Jožef Horvat said today.

Horvat noted that the revenue from value added tax in the first six months was up by 23% compared to the same period last year and revenue from income tax by 6%.

“In nominal figures this means that budget revenue from income tax and value added tax was up by as much as EUR 355 million in the first five months compared to the same period last year,” he said, attributing this to the changes to the income tax act that introduced a gradual increase in the general tax relief and thus raised net monthly wages.

“We all benefit from the tax reform – both those who work and the state,” Horvat said, urging the government not to change things that are working and produce good results for the public finance.

He thinks the new government should not be scaring people and businesses with new taxes but should send positive signals ahead of the autumn that is expected to be challenging.

Even before it was appointed, the Robert Golob government announced it plans to annul the income tax reform, leaving only this year’s increase in the general tax relief.

Finance Minister Klemen Boštjančič did not reveal any concrete plans about this at his hearing in parliament but he did say it would take months to prepare the changes.

While he is mostly happy with the changes, he criticised the previous government’s failure to put in place measures to offset the drop in budget revenue.