Finance Minister Andrej Bajuk has announced that the government will reform the new tax legislation, which came into effect on 1 January, in order to reduce taxation of work, tackle the informal economy and increase the number of taxpayers.
What should the tax reform provide for?
The government is convinced that the tax reform should provide for a fairer distribution of taxes, which means lower taxes on work and higher taxes on wealth. OECD figures suggest that the grey economy accounts for 25 to 27 percent of Slovenia's total output, which is "worrying. Moreover, the reform should not simply mean an increase of taxes for some, but also an increase in the number of taxpayers. Since some people evade taxes at the expense of the others, people should start demanding receipts from merchants and repairmen who are now moonlighting.
What will the new tax reform introduce?
Aboveall the "pay as you go" taxation of dividends, capital gains and interest rates. The proposals for the changed tax legislation can be expected in the second half of the year. They are to be drafted by a special team of experts, headed by Marko Kranjec. The ministry is also drafting amendments to the 2005 budget, which the government is due to adopt in March. I still cannot say in what way the budget would be changed, but the internal restructuring of budget expenditure is imminent.
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