The Slovenian government appointed four members of the consulting board (arbiters) according to the Arbitration convention on 17 March 2013. One of the appointed arbiters is mag. Barbara Guzina, chair of the AmCham Tax Committee.

Mag. Barbara Guzina, Co-chair of AmCham Tax Commission and Partner in A Tax Solutions International Ltd.:

We are aware of the needs of the country for obtaining additional financial resources for its operation. Additional funds can generally be provided from three sources, namely:

1. New borrowing (practically impossible in the current situation);

2. Increase in budget revenues (increase of certain taxes, among them the most convenient is the VAT increase); and

3. Making savings in other areas (mainly by lowering the costs of state administration).

We generally oppose the VAT rise, even more if the increase will not happen at the same time with other measures that would bring savings to the state budget. It is namely not fair that only final consumers bear all the burden of the current crisis. With the rise of VAT, the inflation will increase (which in times of crisis as a matter of fact is not too problematic), but will definitely burden the socially weak.

However, if the increase of the VAT rate will be “accompanied” by simultaneous “cuts” in other areas, these measures could altogether at least in a short-term bring positive effects to the state budget. If it is necessary to increase tax revenue, it would be definitely best done by increasing the rate of VAT (and not by increasing personal or corporate taxes).

mag. Barbara Guzina, Partner A Tax Solutions International Ltd. and Co-chair of AmCham Commission for Taxes