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Slovenia Business Week no. 32: Chamber of Commerce and Industry of Slovenia Welcomes Government Plan to Phase Out Payroll Tax

According to the budget framework for the next two years, the tax will be cut by 20% in 2006, a further 20% in 2007 and 30% in 2008, before being fully phased out in 2009

The Chamber of Commerce and Industry of Slovenia (CCIS) has welcomed the government announcement that the payroll tax would be gradually phased out. Any measure that improves competitiveness is very welcome, the adviser to the CCIS president told STA on Monday, 1 August.  

"The very fact that the phase-out is starting is positive, yet the corporate sector would like this to happen as soon as possible," Joze Smole told STA.  

He pointed out, however, that this measure will not resolve all the problems faced by Slovenian companies, as the impact will be smallest in labour intensive industries which struggle most.  

"These industries require special attention and other effects to help them resolve the crisis situation," he pointed out.  

According to the budget framework for the next two years, which the government presented on 29 July, the tax will be cut by 20% in 2006, a further 20% in 2007 and 30% in 2008, before being fully phased out in 2009.  

Moreover, Smole said that the CCIS would make efforts to speed up the process to phase out the payroll tax in two years.

Source: Slovene Press Agency STA

Author: STA