Chamber of Commerce Warns Against Potential VAT Increase

Business,  01 Mar 2013  / By STA, T. M.

The Slovenian Chamber of Commerce (TZS) warned on Friday against a possible VAT increase under a new government led by Alenka Bratušek, saying it would especially hurt the commerce sector, which employed 18% of people in Slovenia.

According to the chamber, a VAT increase already showed negative results in Hungary, while it also runs contrary to policies of successful European countries who are tackling the crisis with measures that boost domestic consumption
According to the chamber, a VAT increase already showed negative results in Hungary, while it also runs contrary to policies of successful European countries who are tackling the crisis with measures that boost domestic consumption

VAT increase, indicated as possibly unavoidable by Bratušek, would make companies even less competitive and cause "an additional drop in economic activity in Slovenia", the TZS wrote in a press release.

The chamber stressed that a third of the revenues in the Slovenian economy, which contracted by 2.3% last year, was generated by companies related to commerce. Thus special care is needed when adopting measures that directly affect purchasing power.

The TZS pointed out that when excluding petrol, sales indices showed an average drop of almost 15% in retail between 2008 and 2012.

It moreover highlighted the VAT revenue secured with spending by individuals and companies from neighbouring countries and pointed out that the present VAT rate - 20% general and 8.5% reduced - was comparable to the one in Austria and Italy.

According to the chamber, a VAT increase already showed negative results in Hungary, while it also runs contrary to policies of successful European countries who are tackling the crisis with measures that boost domestic consumption.
 

Tags: Slovenia, economy, VAT, increase, budget, Chamber of Commerce, Alenka Bratušek, government


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Joao Guedes, 21.04.2013 ob 20:50

If they do so, it will be the Total Disgrace and Destruiction of Slovenians. We can see what happened here in Portugal ( where Portuguese in General Specially Portuguese Politics are more Stupid, Poor and Sick Mind People - except to Steal worst and more than all Nigerians together ).

If Slovenia wants attract Potential Investors, should reduce the VAT to 1% under Swiss VAT and Negotiate as Trade Fuels from Russia at less than 1 € / Ltr to the Public generating so the Increase of Consume, and generatin g so much more positive results to tell EU after to go to the hell. Otherwise will be all F____d.

Concerned Observer, 13.03.2013 ob 19:45

Kaiser is absolutley correct. increasing VAT is lunacy.
Anyone with half a brain or more understands that reducing taxation encourages growth and wealth creation. Job also get a boost.

Kaiser.economist, 01.03.2013 ob 19:17

Increasing VAT above 20% is madness for the additional reasons to those mentioned above.
1, It is a regressive tax that hits the poorest hardest.
2. It encourages more people to actually evade VAT so that the actual revenue from VAT could decrease.
3. Taxes are already too high here and further tax increases will plunge the economy further to another downward spiral.

Instead cut the useless bureaucracy in this country and stop bailing out the banks then you don't need to increase VAT



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