Mramor argues that it is impossible to be lowering the deficit as well as the taxes simultaneously. Foto: BoBo
Mramor argues that it is impossible to be lowering the deficit as well as the taxes simultaneously. Foto: BoBo

The greatest hurdle, caused by wrong economic policies of past governments, is the deficit, which needs to be eliminated by 2020. In these circumstances, when the deficit needs lowering, taxes cannot be lowered as well, argues Mramor: "There's no option for this. No wizard who could simultaneously lower the deficit as well as taxes."

"But I also understand the businesses in these conditions," added Mramor, emphasizing that the government has pledged in the social agreement that taxes would not be raised and that it would cooperate with the businesses if tax re-structuring could increase Slovenia's competitiveness.

State budget to save 40 per cent, 60 will come from businesses
According to the Minister, a final draft will be sent to the Economic and Social Council as well as the coalition. Tax re-structuring plan is worth 100 million euros and will provide tax relief for more productive workers or, in other words, those whom companies would like to reward. This expense will be covered by savings from more effective management of state spending (EUR 40m), while raising capital gains tax will bring 60 million euros. "There's no other option," Mramor repeated.

Responding to criticism from small businesses, warning that tax restructuring won't bring anything, Mramor argues that EUR 55m will go for lower income taxes, and EUR 45m for lowering the taxation on rewards for successful work (up to 70 per cent of the average salary).
Craftsmen and small entrepreneurs still disappointed

The president of the Chamber of Craft and Small Business of Slovenia (OZS), Branko Meh, expressed his disappointment over Mramor's estimates that their demands for lower taxes were merely wishful thinking. "We, craftsmen and small entrepreneurs, work in the economy, fill the state budget, and will continue to send a list of demands to the government. We do not intend to supplicate and beg for what the government is willing to give us, but demand that certain things must be arranged if we are the ones who fill the budget."

Meh pointed out that OZS prepares about 100 demands every year. In this year, the chamber composed a list of 113 demands and singled out 10 for the government to pay special attention to and, in this way, create better conditions for doing business on the Slovenian market, for strengthening the competitiveness and easier employing.

A. Č., MMC; translated by K. Z.