New political thriller in Slovenia after the veto in the real estate tax

New political thriller in Slovenia after the veto in the real estate tax

 

By Christos T. Panagopoulos –

The National Council vetoed on Wednesday the 2014-2015 budget implementation act and the disputed real estate tax passed by the lower chamber of parliament last week. The motions will now have to get an absolute majority in a re-vote to be confirmed.

Both motions were filed by the group of councillors representing local communities. They believe the real estate tax will erode the funding of municipalities while the borrowing planned for the coming two years will lead Slovenia to bankruptcy.

They contest a provision that would allow Slovenia to borrow EUR 10bn next year, as they believe this will render the country incapable of paying its annuities and interests.

The real estate tax would reduce the competitive edge of Slovenia’s entire economy, the group said. They pointed out that the tax reduced municipalities’ funds.

The group moreover opposes a provision stipulating that proceeds from the sale of the state’s shares in company should be used to spur the economy. They believe the country’s debts should be repaid first.

If the real estate tax is passed in the re-vote in the National Assembly, the law will face another hurdle soon, as the Koper city council is to launch a constitutional review of the real estate tax.

A constitutional review has also been announced by a group of opponents of the real estate tax, which have so far collected 75,000 signatures against the tax as part of a petition launched two weeks ago.

Source: Slovenia Times