The Finance Ministry has presented two tax bills that form part of the tax reform package and are to be adopted by the government next week. The new bills on corporate income tax and tax
The new bill on corporate income tax will eliminate double taxation, said Finance Ministry State Secretary Andrej Sircelj, however it abolishes the relief for the purchase of equipment.
Dividends and capital gains will be excluded from the tax base under certain conditions. With this the government wants to stimulate foreign and also Slovenian investors.
The new tax procedure bill extends the time for complaint from 15 to 30 days and enables the correction of the tax return after it has been handed in. It also brings the possibility of deferred payment or payment in installments.
Bajuk hopes that the tax bills will be passed by the parliament in November.
In an interview for the weekly Mag meanwhile, Bajuk said that the government can still decide to increase the value added tax (VAT). However the maximum increase would be one percentage point.
The government has given up the idea of the flat tax rate because the calculations revealed that its effect on the economic growth would not be such as anticipated, while its effect on inequality would be extremely noticeable.
Bajuk added that the fear of losing the authority was not the reason for the flat tax rate's failure, Bajuk also told the weekly.
Author: STA, Slovenian National Press Agency