In preparing the proposals for tax changes, the Ministry, drawing on discussions in the Strategic Tax Council and the Tax Working Group, has identified key development challenges in the existing tax system that could be supported by appropriately designed tax measures. The solutions thus address the objectives of increasing the productivity and international competitiveness of the Slovenian economy, while ensuring the sustainability of public finances in the medium and long term.

A key part of the package of proposed tax changes are development-oriented measures aimed at supporting higher value-added activities and employees, with a view to accelerating the reduction of the gap with countries considered to be innovation leaders. They will support the conditions for increasing the value added of the economy by introducing a more favourable tax treatment in the form of a reduced income tax of 7% on wages received. This is a measure aimed at attracting highly qualified workers. It applies to Slovenians who have been working or studying abroad for at least five years to gain experience, or to foreigners who are newly employed in Slovenia, all of whom must be under 40 years of age. These key personnel will benefit from favourable tax treatment for five years. They will also make it easier to reward employees with shares and stakes and address the challenges of innovative start-ups in rewarding employees and ensuring adequate liquidity in the early stages of their business.

The second part of the package includes measures to improve the international competitiveness of the Slovenian economy and to increase the fairness of the tax system, taking into account, as far as possible, suggestions from the business community. These include several measures in the area of value added tax, extending the period for using the green and digital switchover allowance from one to five years, and listening to farmers by exempting payments for farming in less-favoured areas from taxation.

The measures in the third part of the package address some other policies and objectives. They will adjust the taxation of sugary drinks (with added sugar) and energy drinks, as well as alcohol and alcoholic beverages (excluding wine). They also point out that the reduced rate of VAT on natural fruit juices and waters without added sugar will continue to apply. The aim of this measure is not to generate additional public revenue but to support the achievement of public health objectives.

The measures have been included in amendments to the Income Tax Act, the Corporate Income Tax Act, the Value Added Tax Act, the Tax Procedure Act, the Act on the Mass Valuation of Real Estate, the Act on the Tax Validation of Invoices and the Regulation on the Determination of the Amount of Excise Duty on Alcohol and Alcoholic Beverages.