Finance expects govt action on energy prices

Ljubljana – Gas and electricity prices are likely to increase due to supply constraints and huge demand. Some countries have already taken action to bring down prices, Slovenia could follow suit, business daily Finance argues in Monday’s commentary.

The easiest way for Slovenia to reduce gas and electricity prices would be via the VAT rate, which could be temporarily waived. But the question is whether this is really necessary. Slovenians’ bank accounts have never been fuller, and the state coffers are emptier than they have been in a long time.

If the price pressure persists and more countries decide to help people out, it may happen that Prime Minister Janez Janša jump on that train as well. He has shown willingness to do that with one-euro petrol during the epidemic and with the tourist vouchers in 2020 and the more general vouchers in 2021.

“With supply problems mounting and prices growing, it would not be bad if the government had a contingency plan to mitigate the pressure on prices. It could start by reducing VAT to 20%, the level where it used to be,” Finance concludes in Should Janša Follow the Lead of the Socialist Scnahez?

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