The Slovenian government is currently not considering an increase in value-added tax (VAT) or income tax, but is contemplating the introduction of a tax on bank balances, stated Slovenian Finance Minister Franci Križanič.
"For now, we do not plan to increase VAT or change income tax policy, but we are considering the idea of introducing a tax on bank balances or capital to collect more tax from the wealthy. However, this idea is not yet fully articulated," Križanič said in an interview with Slovenian television. In light of reduced revenues for the state treasury, the government intends to reduce budget expenditures this year through austerity measures and further stabilize public finances, Križanič added, expressing optimism in this regard. Križanič urged the opposition and unions, who oppose the implementation of pension reform aimed at stabilizing public finances, to constructively support the reform and possibly request minor amendments.
If the pension reform fails in the announced referendum this year, the consequences for the country would be severe as interest rates for foreign loans would increase for Slovenia, and the state would find itself in a situation where it could not pay pensions and the existing pension system would collapse, Križanič stated. For the first quarter of this year, Križanič again announced an attempt to recapitalize Nova Ljubljanska Banka (NLB) with 250 million euros in an agreement with the Belgian group KBC, which is the largest co-owner of NLB after the Slovenian state. (H)
