S.R./STA
28. 11. 2024, 12.38
Updated: 11/28/2024, 12:38 p.m
The State Council vetoed the amendments to the Income Tax Act and the Value Added Tax Act (VAT) and sent them back to the National Assembly, where, as expected, they succeeded in gathering an absolute majority and reconfirmed the law.
Deputies adopted the amendment to the Income Tax Act, which is scheduled to enter into force on January 1, 2025, with 50 votes in favor and 28 votes against. Members of Svoboda, SD and Left voted in favor, while members of SDS and NSi voted against. With 48 votes in favor and 26 against, they also adopted the amendment to the VAT Act, which is also scheduled to enter into force on January 1, 2025, and confirmed it with 48 votes in favor and 26 against.
State councilors oppose some of the provisions in the two amendments to the laws, which were adopted by the National Assembly two weeks ago as part of a broader package of tax changes, which is why they vetoed the amendments last week. They find the provisions discriminatory or unfavorable for taxpayers. First of all, they are disturbed by the lowering of the threshold for taxation of independent entrepreneurs under the system of normalized expenses, a new tax relief for highly qualified workers from abroad, additional administrative burdens for companies and an increase in the taxation of sugary drinks.
Why they oppose change
Amendment to the Income Tax Act, according to the state councillor Bojan Kekac it does not address the essential challenges of competitiveness and is not consistent with the constitutional principle of equality and the rule of law. “Above all, on its basis, companies will not be able to attract or retain a highly qualified workforce,” said about relief for young people under 40 who would return to Slovenia after two years of work or study abroad or foreign nationals are employed here. He warned that he does not offer these incentives to professionals who stay in Slovenia for their entire careers.
The State Council is also opposed to the lowering of the threshold for entry into the TI system from EUR 100,000 to EUR 60,000 in annual turnover. Such a reduction is too rigorous, said Kekec. He also opposed some other provisions, including the shrinking of credit ratings for electric company vehicles, which he considers contrary to the goals of the green transition.
“The amendment addresses improving the competitiveness of the economy, job creation and added value,” he said Rado Gladek (SDS). Jernej Vrtovec (NSi), which primarily disagrees with the changes for self-employed entrepreneurs, expressed his belief that the Constitutional Court will annul it as early as next year.
The amendment to the VAT Act transposes two European directives into the Slovenian legal order, and the government has included some other solutions. Kekec warned that the provisions on keeping additional records and a wide range of data impose additional administrative and cost burdens on taxpayers. “The exclusion of the supply of drinks with added sugar or sweeteners from taxation with a reduced VAT rate is also controversial,” he said. According to him, a higher VAT on sugary drinks will not reduce the consumption of unhealthy drinks and therefore will not have the expected beneficial effects on the health fund.
Source: svet24.si
