By: Lea Kalc Furlanič
The Development Act permanently reduces VAT on bread, milk, meat, fruit, eggs, vegetables, cooking oil, and sugar. These are basic foodstuffs, not luxury goods. Tradespeople currently pay approximately €650 per month in social contributions to the state. Under the new system, they would pay €250 per month. This can make the difference between closing a business and being able to hire an additional employee, continue expanding operations, and create jobs for others.
Today, the state reduces pension payments for retirees who continue working. Under the new law, retirees would be able, if they choose, to continue working while receiving both their full salary and their full pension. In addition, they would no longer have to pay the long-term care contribution, as they have already contributed and paid taxes throughout their working lives. The law would also allow doctors, with appropriate approval, to work additional hours. Every extra hour worked by a doctor means one fewer patient waiting in a queue. Property owners who rent an apartment to a person under 30 years of age or to a family with children would pay 5% tax instead of 25%. The government would also be able to reduce VAT on electricity, gas, and firewood to 9.5% for up to nine months for households. For comparison, Austria caps social contribution calculations at €6,930, while the proposed Slovenian law would introduce a cap at €7,500. We want to retain young people in Slovenia. Farmers would also benefit from lower VAT rates on seeds and fertilizers. These and other measures were explained to the public by Peter Papež, State Secretary at the Ministry of Finance.
This is not a law for the wealthy, as trade unions, opposition parties, and certain NGOs allegedly claim, but rather a law intended to reduce the financial burden on citizens, entrepreneurs, and the broader economy. Slovenians are not afraid of work, are we? May St. Nicholas bring us common sense on referendum day, rather than idleness and political gamesmanship.