Slovenia

This chapter introduces the conceptual framework used to describe the main characteristics of the taxation of road transport, encompassing the three main tax bases in the sector: energy use, vehicle stock and road use. The chapter also discusses how different tax types contribute to specific aspects of a sustainable tax policy strategy over the long term, taking revenue, fairness and efficiency considerations into account. Finally, the chapter discusses the degree of tax base disaggregation that is relevant to answering strategic questions concerning transport tax policy.

This chapter studies options for tax policy reforms designed to stabilise tax revenues in the road transport sector at current levels, in the long run. It simulates the potential impact of tax reform on revenues for the main technology scenario, considering behavioural adjustments. The focus is on the passenger car segment of the market, where the erosion of the fuel base is expected to be at its highest. The following tax reforms are considered: increasing conventional fuel or carbon taxes on gasoline and diesel, adapting the taxation of motor vehicles and charging based on distances-driven.

This report investigates how tax revenue from transport fuels could evolve over time as vehicles rely less on fossil fuels, with a focus on the case study of the Republic of Slovenia. Reducing the reliance on fossil fuels in the transport sector is a welcome development from the perspective of its climate and health impacts and of reduced energy dependence. However, under current settings, reduced fuel use will also lead to a loss of tax revenues, which may put stress on government budgets. Based on simulations for Slovenia, with a 2050 horizon, the report provides an in-depth assessment of the taxation of road transport and investigates how tax policy could adapt to declining fossil fuel use in the long term if the objective is to maintain revenues at current levels while taking fairness and efficiency considerations into account. It finds that gradual tax reforms, with an evolving mix of taxes, shifting from taxes on fuel to taxes on distances driven, can contribute to more sustainable tax policy over the long term.

Slovenia has a well-developed social welfare system which is successful in reducing inequality. However, it is financed primarily through social security contributions levied at high rates, in particular for employees. This is a challenge given the context of an ageing population. A comprehensive reform of the SSC system is needed and would entail a cut in employee SSCs across all income levels to increase labour market participation. The minimum SSC base is too high and leads to large effective statutory employer SSC rates. The SSC system for employees and self-employed could be further aligned, and the link between SSCs paid and benefits received should be strengthened. Slovenia should consider broadening the SSC base, and aligning the treatment of different types of incomes. To put the funding of the welfare system on a solid footing without reducing entitlements, it will need to partly shifted from SSCs towards general taxation.

This section outlines the procurement system as it is understood today by the civil servants in Slovenia. It includes a discussion on legal reforms that have set the formal agenda, but it mainly focuses on the behaviours of public actors and is based on their lived experiences and realities. The section also touches on issues that have created systemic challenges that need to be tackled.

This report uses systems thinking tools to address pervasive problems in Slovenia's procurement system that the government has struggled to remedy through traditional regulatory means. The report outlines how room for innovation can be created within highly regulated policy domains and how governments can systematically benefit from it. Systems thinking allows for a new understanding of the role of procurement. The report explores potential reforms that could be designed from the bottom-up, to address specific behavioural and structural barriers – such as public perception, risk aversion, accountability and control functions – that cannot be addressed using only a legalistic approach.

Being able to swim empowers individuals to make choices, have agency, and be free to choose core aspects of their life, such as working safely on or near water. It is also associated with lifelong health benefits and reduces the risk of drowning. Using data from the Lloyd’s Register Foundation World Risk Poll 2019, this paper provides the first global estimates of adults’ ability to swim without assistance. Individuals in high-income countries are considerably more likely to report being able to swim without assistance than individuals in low-income countries. Disparities also exist within countries. In particular, women are less likely to be able to swim without assistance than men in virtually all countries, birth cohorts, and levels of education. Investing in reducing inequalities in life skills, such as swimming, can foster economic development and empowerment, especially in light of threats, such as climate change.

Discover the dynamic landscape of Higher Education (HE) in Slovenia and its pivotal role in driving national innovation and entrepreneurship. This comprehensive report delves into Slovenia's diverse HE system, exploring its expansion, government support, and integration with national innovation strategies. Through insightful analysis and interviews with key stakeholders, the report highlights advanced practices, challenges, and recommendations across three critical dimensions: Organisational Capacity, Leadership and Governance, and Entrepreneurial Teaching and Learning. Join us in uncovering Slovenia's journey towards fostering a culture of innovation and entrepreneurship within its HE ecosystem, poised to shape the country's future in the global knowledge economy.

This chapter provides a summary of the policy recommendations for the Slovenian pension system developed in the previous chapters. It covers both public and private pensions as well as pension communication.

The recent move towards the automatic exchange of financial account information between tax administrations creates opportunities for Slovenia to revisit the way it taxes household savings. Tax rates on capital income at the individual level are not particularly high and effective tax rates on household savings vary widely across assets. Some assets, such as owner-occupied and rental immovable property and voluntary private pension savings, are taxed lightly. The capital income tax system lacks progressivity, which tends to be more common under dual income tax systems. Increasing the progressivity of the capital income tax system would require administrative reform as taxpayers would have to start declaring their capital income annually. Recurrent taxes on immovable property should also play a more significant role in the tax mix. The introduction of the new real estate tax is much-awaited as it creates opportunities to rebalance the tax mix and to reform the financing mix of local governments.

Slovenia can strengthen the “enabling conditions” for co-operation in adult learning, by taking action in three areas. These are: developing a comprehensive adult-learning master plan; strengthening cross-sectoral oversight; and improving information for adult learning. These actions can support co-operation between ministries, municipalities and stakeholders alike. The chapter presents each of these areas for action in turn with 1) an overview of current arrangements; 2) a discussion of the opportunities for improvement; 3) examples of good practice from Slovenia and abroad; and 4) recommended actions for strengthening co-operation in order to boost adults’ learning and skills.

Scope exists to strengthen the role of the PIT. Any cut in employee SSCs needs to go hand in hand with re-designing the PIT rate schedule to maximise labour market participation, to share the gains of the employee SSC reduction fairly across the income distribution and to help finance the reform. The PIT increases the tax burden on labour income, particularly for higher income earners. The top PIT rate is high and reducing it would come at a relatively low cost. The tax base is relatively narrow as a result of exemptions and special tax provisions. Tax provisions take the form of tax allowances, which is in contrast to best practice in the OECD, where tax credits are more widely used as they provide the same benefit to all taxpayers irrespective of their income and marginal tax rates. Broadening the tax base could be achieved by abolishing the tax exemption for the reimbursement of home-work travel expenses and meals during work and by taxing annual and performance bonuses as regular taxable income. Families with children are taxed significantly less than single taxpayers as they can benefit from both child tax allowances and child cash benefits. High tax burdens on labour income reduce the incentives for entrepreneurship. In response, Slovenia has introduced an alternative “flat-rate” regime which is overly generous and prevents businesses from growing.