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Slovenia Business Week no. 44: Companies Express Support for Proposed Reforms

According to CCIS president Jozko Cuk, the measures for the most part include the demands voiced by companies over the past decade

Members of the Chamber of Commerce and Industry of Slovenia (CCIS) support the proposals of structural reforms put forward by the government reform committee, CCIS officials told the press on Thursday, 27 October.

According to CCIS president Jozko Cuk, the measures for the most part include the demands voiced by companies over the past decade.

His comments come after CCIS representatives met members of the government reform committee to debate the planned measures.

Cuk said that it was now up to the government to adopt and implement the measures as soon as possible.

Meanwhile, he admitted that the main problem at the moment was a lack of estimates on the consequences of the planned measures.

Cuk explained that the chamber staged a number of in-depth debates about the proposed reform package among its branch sections, regional branches and expert groups in recent days.

"The CCIS is inclined to the proposed reforms," Cuk told the press in a summary of the message delivered by CCIS officials to members of the reform committee at the meeting.

The main priority should be measures aimed at supporting companies and facilitating economic growth, he said.

According to him, the key factors to improving the competitiveness of the Slovenian economy include lifting the burden on labour, loosening employment legislation, creating a pro-business environment and promoting science and technology.

Moreover, Cuk claimed that the current debate about the reforms is overly focused on a single proposal, the flat tax. Although simplification of the tax system is an important aspect of reform, the main goal should be to streamline the state's operations.

The proposed flat tax has caused some concern among certain sections of the CCIS, especially the tourism section, as a rise in the value added tax for food and beverages could make the sector less competitive.

Instead of seeking to raise taxes, the reform committee should look to cut public spending, Cuk said.

However, head of the reform committee Joze P. Damijan explained that the cut in tax revenues related to the planned phasing out of payroll tax must be offset in other fields: either Slovenia raises VAT rates or cuts 25% of the public administration.

Source: Slovene Press Agency STA

Author: STA