Companies to pay 0.8% of profits, people 0.3% of income tax to flood fund

Ljubljana, 25 August - After the government adopted emergency flood relief legislation on Thursday, Finance Minister Klemen Boštjančič explained in more detail on the late-night current affairs show Odmevi that contributions to a special reconstruction fund would amount to 0.8% of pre-tax profit for companies and to 0.3% of income tax for individuals.

Bridge over the Mislinja River destroyed by floods.
Photo: Vesna Pušnik Brezovnik/STA
File photo

Saying that floods that hit Slovenia in early August caused over EUR 5 billion in damage, Boštjančič explained that these mandatory contributions are expected to net between EUR 100 million and EUR 150 million a year for the Slovenian Reconstruction Fund.

Instead of paying the contribution, people will also be able to work it off: by working one Saturday this year and another in 2024.

The minister said the financial effects of the emergency legislation adopted yesterday are assessed at between EUR 150 million and EUR 170 million.

Details about the fund, also dubbed SOS fund, are unclear, but unofficial information reported by several media indicates that the fund would manage around EUR 3 billion.

© STA, 2023