NSi urges govt not to reverse tax reform, proposes measures

Ljubljana – The opposition New Slovenia (NSi) has urged the government not to reverse the tax reform introduced by the previous government, while also noting that it should prepare a package of targeted measures to help vulnerable groups as well as measures to help business cope with the growing energy prices.

Speaking to the press on Wednesday, NSi deputy Jernej Vrtovec urged the government “not to lower wages” in reference of the government’s plan to revoke parts of the tax reform adopted by the government of Janez Janša, which also included the NSi.

“Many prominent business executives and economists are absolutely unanimous in the opinion that the tax reform that finally relieved the labour taxation burden was one of the best measures taken by the previous government,” he said.

According to Vrtovec, people understand that the previous tax reform brought higher wages for everyone. “We trust people and believe that they can turn one euro into two euros or more,” he said, adding that this was also good for the national budget.

He called against this reform being overturned just because it was adopted by another government. “If every government did this, Slovenia would stand still and would never be able to achieve a true developmental breakthrough.”

Vrtovec noted that the government should take Germany as an example, as the country has announced a package of tax relief measures for citizens worth EUR 10 billion.

The NSi believes that the general income tax break and the thresholds of the income tax brackets should be additionally raised in order to at least maintain the standard.

The party has also prepared proposals about which it is willing to talk with the coalition. “The NSi supports a lower VAT on energy … a lower VAT on the prices of food” and proposes a 5% VAT rate for the basic basket.

The government should also prepare a package of targeted measures to help vulnerable groups as well as measures to help business cope with the growing energy prices.

Vrtovec said an “avalanche of lay-offs and receiverships” could otherwise be expected, proposing that 70% of the increase compared to the average consumption in the past two years should be subsidised by the state.

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