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Slovenia Urged To Shift Tax Burden Away From Workers

Friday, May 19, 2017

Slovenia should increase its capital gains, real estate, and excise tax burden to raise funds for labor tax reform, the International Monetary Fund (IMF) has said.

The IMF recommended that the country "reform the real estate tax so that it yields revenue equal to the OECD average and adjust the specific excise tax rates as needed to prevent revenue erosion."

It added that capital gains tax should be increased for high net worth individuals.

Theses reforms would create room for growth-friendly fiscal policies, such as reducing labor taxes for low earners to "ensure that the entry-level net wage is markedly higher than social assistance benefits," the IMF said.

Meanwhile Slovenia should eliminate the preferential tax treatment of pension incomes and take measures to improve collection, it added.

Last year Slovenia announced that it would increase corporate tax by two percent and reduce personal income tax for middle-income taxpayers in 2017.