NEWS

Prime Minister’s press conference

At today's 79th regular session, the Slovenian Government, alongside other resolutions, adopted three amendments, namely amendments to the Personal Income Tax Act, the Corporate Income Tax Act and the Tax Procedure Act. Moreover, the Government gave its approval to the texts of the Exercise of Rights to Public Funds Act and the Social Benefits Act. The Slovenian Prime Minister Borut Pahor and the responsible ministers outlined the major resolutions, and Mr Pahor then answered a number of topical questions.

      

(Photo: Kristina Kosec/STA)

    

At today's session, the Government confirmed the text of the amended Personal Income Tax Act. The proposed Act introduces a new relief for employing persons with low employability and increases the general relief for investments in research and development, both reliefs being already applicable for 2010. The Act furthermore eliminates the taxation at source for interests arising from debt securities for non-residents. The amendments to the Corporate Income Tax Act abolish the taxation at source in payments of interests arising from debt securities issued by companies, including banks, and established under the regulations applicable in Slovenia.  The aim of the proposed Act is to disburden taxable persons, to improve their situation in the current economic and financial circumstances and to provide incentives for employment and R%D investments. The amended Tax Procedure Act modifies the method of levying income tax arising from interests achieved by residents from debt securities issued by companies, including banks, which are residents of Slovenia.
       
Moreover, the ministerial corps adopted the Exercise of Rights to Public Funds Act. The purpose of the Act is to create a more just and long-term sustainable social state. A more transparent and simplified system of social transfers will provide aid to those who truly need it and prevent the current, quite frequent abuses of the existing system.  The Social Benefits Act, also adopted today, improves the current regulation of the institute of cash social assistance by adjusting it to individual beneficiaries in accordance with the assistance duration, the beneficiary's ability to take up work, his/her age and years of service. At the same time, the Act adjusts the basic amount of the minimum income to the newly calculated minimum cost of living.
      
At the press conference, Prime Minister Pahor outlined the implementation of the exit strategy and the associated acts prepared by the Government. In doing so, Mr Pahor expressed his satisfaction with the progress made within the major pillars, i.e. entrepreneurship and skills for developments, as well as flexicurity and social cohesion. The Slovenian Prime Minister said that the Government can be satisfied with the implementation of the exit strategy and emphasised that the Slovenian corporate sector is in increasingly good shape also because of measures adopted to date. Mr Pahor went on to point out that while Slovenia had successfully resolved the problems, which could have resulted in a situation currently experienced by Greece, it is now confronted with a question whether it wants to remain satisfied with the average or go beyond it by accepting additional sacrifices. Slovenia is currently faced with a clear dilemma requiring a decision as to "whether we want to be top of the class or remain average and be satisfied with the third best mark, i.e. good," concluded Prime Minister Pahor.