Ljubljana, 25 April (STA) - The government has been criticised by the unions for failing to match budget expenditure cuts with revenue-side measures, but the coalition announced Wednesday that new measures, including higher taxes, were already in the pipeline and would be put in place after the 2012 supplementary budget is adopted.
The omnibus bill on the balancing of public finances involves five
revenue-side measures: taxation of extraordinary profits from land use
changes; a special tax on high-value real estate, higher capital gains tax,
a tax on luxury boats, and higher taxes on high-end
Additionally, the government plans to introduce a tax on
financial transactions, Democrat (SDS) MP Andrej Šircelj told the press
today. This will have the biggest fiscal impact among the proposed measures
as $the tax base is broad$.
A new income tax bracket for
the highest earners will be set at between 45% and 50%, according to Marija
Plevčak of the Pensioners' Party (DeSUS).
A law to that effect had
already been sent to parliament but the coalition withdrew it in mid-April,
arguing that negotiations on revenue-side measures between the government
and the trade unions were still ongoing.
Another planned measure is
improving the efficiency of tax collection, which means, among other
things, loosening the provisions on tax secrecy. $There is no reason
why those who don't pay taxes should remain anonymous,$ Šircelj
The tax procedure act will also be tweaked to allow the Tax
Administration to confiscate the property of tax evaders in order to pay
their tax debt, according to Šircelj.
A new law will be put in place
to tax second homes of over 160 m2.
Meanwhile, a former official at
the World Bank and advisor to the Slovenian government in 1991-1992
rejected the notion that austerity was bad for growth.
Pleskovič told a business meeting organised by the coalition New Slovenia
(NSi) that a balanced budget was the necessary first step on the road to
He pointed to Asian countries, in particular China, which
have had budget surpluses but nevertheless high rates of
$If we save, everyone is more cautious about where the
money is channelled...It will be easier to kick-start growth when we show
that we can be prudent with out money$, he said.