ZL supports debt write-off for the poorest

ZL expects support from the coalition

ZL MP Luka Mesec stressed that the planned tax deductions could serve as a powerful incentive. Foto: BoBo

The United Left (ZL) has penned a draft bill that would allow companies to write off debt for low-income individuals. The write-off would apply to overdue electricity, gas, heating, waste management and telecommunications bills, as well as unpaid rents.

Beneficiaries of social transfers and those whose average monthly income is lower than 593 euros would be eligible. According to the ZL, a total of 20,000 individuals fall into this category. Hence, these people would be given a fresh start. In order to prevent abuse, this measure would apply only to debts due by the end of 2014.

Individuals owning more than one property would not qualify either. Creditors would also benefit from the measure, as the amount written off could be claimed as a tax deduction.

Slovenian telco Simobil said that customers owed them €22 million in unpaid bills. ZL MP Luka Mesec stressed that the planned tax deductions could serve as a powerful incentive. The party moreover maintains that the tax revenue lost would be offset by increased consumption.

The ZL called upon the government to follow the example of Croatia, Hungary, Macedonia and Iceland. Under the Croatian scheme, individuals with liabilities of up to 35,000 kuna (4,600 euros) are eligible for the write-off. So far, 4,556 beneficiaries of social transfers were found to be eligible. According to the Croatian government, up to 60,000 citizens could qualify for the debt write-off.

B. V. (MMC), Erna Strniša (Radio Slovenija);
translated by D.V.