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Slovenia Business Week no. 44: Government Reform Committee Releases Second Part of its Reform Document

The government reform committee published the second part of its reform document, outlining the reasons for the proposed measures and backing them up with concrete figures

The government reform committee on Monday, 24 October published the second part of its reform document, outlining the reasons for the proposed measures and backing them up with concrete figures.

The document has already been forwarded to relevant government committees, while the government is expected to discuss the paper next week, Prime Minister Janez Jansa told the press.

Speaking after meeting six of the biggest trade union associations in the country, Jansa said that the government reform committee would hold a meeting with representatives of parliamentary parties to outline the second part of the document.

The coalition parties are also expected to hold a meeting of their own to get acquainted with the supplemented paper, he added.

According to Janez Sustersic, a member of the reform committee, the supplements include measures to prevent shocks in the welfare state as a result of the reforms, especially the proposed introduction of flat tax.

He added that the supplements also deal with efforts to establish a new wage system and new wage policy. The reform committee proposes that an agreement on a new wage system be sought in unison with the introduction of a flat tax and reforms of social security, Sustersic said.

The document also addresses criticism aimed at the proposed flat tax, especially the proposal to have only one VAT rate, meaning that the current 8.5% rate levied on food and beverages would more than double, a measure that unions say would hit poor people the most.

According to a German study, which the committee cites in the 180-page document, different levels of VAT are actually inefficient and expensive.

Moreover, Sustersic said the document also tweaks some of the proposed measures aimed at boosting enterprise. "We got a number of complaints about a lack of substantive measures," he said, adding that the new document includes four measures aimed at boosting technological development.

Source: Slovene Press Agency STA

Author: STA