Chamber of Commerce supports VAT decrease
President of the Serbian Chamber of Commerce (PKS) Miloš Bugarin says he will propose a new package of measures for the economic crisis.
Monday, 17.08.2009.
09:48
President of the Serbian Chamber of Commerce (PKS) Milos Bugarin says he will propose a new package of measures for the economic crisis. The ones introduced thus far have not yielded results, he stated. Chamber of Commerce supports VAT decrease The Chamber of Commerce will propose a VAT and personal income taxes decrease, not to contradict the government or get in the way of negotiations with the International Monetary Fund, but because those are the demands of the industry, Bugarin said. He added that these are measures that would enable the domestic industry to legalize business in the long term, increase demand and production, and would lead to a more regular supplementing of the budget. Bugarin said that if this does not happen, companies which cannot pay high taxes will be forced to enter a grey economy, which would decrease the number of those paying taxes. The PKS head went on to say that he is very pleased with the statement coming from Economy Minister Mladjan Dinkic, who said that VAT will not be increased and that wages will not be decreased either, adding that it is "a very good message". He said that an increase in VAT and taxes on wages that are higher than RSD 40,000 in order to fill the budget, would be short-term measures, which would not work in the long term. They would only decrease the demand and would not help the competitiveness of companies, Bugarin was quoted as saying.
Chamber of Commerce supports VAT decrease
The Chamber of Commerce will propose a VAT and personal income taxes decrease, not to contradict the government or get in the way of negotiations with the International Monetary Fund, but because those are the demands of the industry, Bugarin said.He added that these are measures that would enable the domestic industry to legalize business in the long term, increase demand and production, and would lead to a more regular supplementing of the budget.
Bugarin said that if this does not happen, companies which cannot pay high taxes will be forced to enter a grey economy, which would decrease the number of those paying taxes.
The PKS head went on to say that he is very pleased with the statement coming from Economy Minister Mlađan Dinkić, who said that VAT will not be increased and that wages will not be decreased either, adding that it is "a very good message".
He said that an increase in VAT and taxes on wages that are higher than RSD 40,000 in order to fill the budget, would be short-term measures, which would not work in the long term.
They would only decrease the demand and would not help the competitiveness of companies, Bugarin was quoted as saying.
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