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Slovenia Business Week no. 28: Business Officials Would Like Greater Reduction in Tax Burden

Business officials have told Finance Minister Andrej Bajuk that although the proposed tax reform is a step in the right direction, it does not go far enough in alleviating the tax burden on businesses

Business officials acquainted Bajuk with a number of complaints they have regarding the proposed tax reform, the president of the Chamber of Commerce and Industry Jozko Cuk told the press after Wednesday's, 13 September meeting between Bajuk and business officials in Ljubljana.  

Business officials would like the payroll tax to be abolished as soon as possibly, as well as guarantees that VAT rates would not be increased in the coming years and a cut in the corporate income tax rate from the proposed 23% to 20% at the most.  

In response Bajuk promised he would keep in mind the suggestions of business officials, although he said that he could not make any guarantees even though he understands the wishes of businesses. He stressed the importance of stability of public finance as a factor against radical steps.  

The finance minister also said that the government is striving to make sure that there would be no rise in VAT rates in the future, but added that the government will not shy away from increasing rates if that proves necessary.  

The meeting was attended by executives from some of Slovenia's biggest corporations, who said they were expecting more comprehensive reforms. "Unfortunately we are going to see changes whose results will come over time instead of immediately," said chairman of fashion company Mura.  

Meh said business officials were disappointed that most of the debates revolved around personal income tax instead of corporate income tax. He also pointed to the importance of cutting red tape in tax procedures.  

Other executives called for the state to begin cutting its spending. "If the state is not serious about cutting its spending, the results of shifting the tax burden will have few effects," chairman of Kovinoplastika, a plastics and steel manufacturer, Alojzij Mazi said after today's meeting.

Author: STA, Slovenian National Press Agency