Cvetković denies VAT hike demand

Negotiations continued on Tuesday in Belgrade between Serbian government officials and a delegation of the International Monetary Fund (IMF). The two sides are negotiating a revision of the stand-by agreement approved to Serbia in March of this year. Cvetkovic denies VAT hike demand Thus far, it has been agreed that it is necessary to accept a larger budget deficit. Prime Minister Mirko Cvetkovic presented the government’s strategy to IMF officials, which calls for reforms in the public sector with the goal of decreasing public spending. The IMF believes that this is a measure that will eventually yield positive results. Cvetkovic said Tuesday that the International Monetary Fund (IMF) mission had not insisted on raising the VAT, as some media in Belgrade reported, and stressed that there would be no increase in taxes for the Serbian economy. "The policy of the government is not to raise taxes for the economy and citizens," said Cvetkovic and added that at the Monday meeting, the IMF mission did not insist on VAT increase as a measure to raise the budget income. Cvetkovic said that during the talks, they had also discussed the increase in the budget deficit, which is not a result of higher expenses, but rather of reduced income due to the economic crisis. At the opening of the construction works on Kragujevac-Batocina road, Cvetkovic said that the conclusion of the Monday talks with the IMF mission was that expenses could be reduced through a public sector reform. The prime minister expressed his belief that the negotiations with the IMF mission will be completed successfully by Wednesday, September 2, the last day of IMF's planned visit in Belgrade. According to B92’s sources, officials of the IMF stated on Monday that increasing VAT by one percent is the only fast and adequate measure for filling the hole in the state budget. The Association of Small and Medium-Sized Businesses earlier stated that the business community in Serbia would agreed to an eventual increase VAT hike, and would not demand to increase prices, if the government begins to fight against the black and grey economy. Krkobabic meets IMF delegation Deputy Prime Minister Jovan Krkobabic met with officials of the International Monetary Fund (IMF) to discuss pensions and the Serbian pensions system during the crisis, according to his cabinet. The statement said that “as far as wages and pensions are concerned, there will be no decreases in the coming period, which Deputy Prime Minister Krkobabic insisted on in earlier IMF talks as well”. He also insisted on the possibility to, with the first signs of the economy's recovery, find a way to show support for pensioners "within possible conditions" The meeting appraised that the economic crisis had done its worst in Serbia, but that the rehabilitation of the industry will take a longer and will stretch into 2010. Krkobabic said that pensioners have endured their share of the burden of the economic crisis. IMF mission chief Albert Jaeger and his colleagues were acquianted with the reform plan in the sector of pensions and disabilities in Serbia, which they gave their further support to, said the statement.

Cvetković denies VAT hike demand

Thus far, it has been agreed that it is necessary to accept a larger budget deficit.

Prime Minister Mirko Cvetković presented the government’s strategy to IMF officials, which calls for reforms in the public sector with the goal of decreasing public spending.

The IMF believes that this is a measure that will eventually yield positive results.

Cvetković said Tuesday that the International Monetary Fund (IMF) mission had not insisted on raising the VAT, as some media in Belgrade reported, and stressed that there would be no increase in taxes for the Serbian economy.

"The policy of the government is not to raise taxes for the economy and citizens," said Cvetković and added that at the Monday meeting, the IMF mission did not insist on VAT increase as a measure to raise the budget income.

Cvetković said that during the talks, they had also discussed the increase in the budget deficit, which is not a result of higher expenses, but rather of reduced income due to the economic crisis.

At the opening of the construction works on Kragujevac-Batočina road, Cvetković said that the conclusion of the Monday talks with the IMF mission was that expenses could be reduced through a public sector reform.

The prime minister expressed his belief that the negotiations with the IMF mission will be completed successfully by Wednesday, September 2, the last day of IMF's planned visit in Belgrade.

According to B92’s sources, officials of the IMF stated on Monday that increasing VAT by one percent is the only fast and adequate measure for filling the hole in the state budget.

The Association of Small and Medium-Sized Businesses earlier stated that the business community in Serbia would agreed to an eventual increase VAT hike, and would not demand to increase prices, if the government begins to fight against the black and grey economy.

Krkobabić meets IMF delegation

Deputy Prime Minister Jovan Krkobabić met with officials of the International Monetary Fund (IMF) to discuss pensions and the Serbian pensions system during the crisis, according to his cabinet.

The statement said that “as far as wages and pensions are concerned, there will be no decreases in the coming period, which Deputy Prime Minister Krkobabić insisted on in earlier IMF talks as well”.

He also insisted on the possibility to, with the first signs of the economy's recovery, find a way to show support for pensioners "within possible conditions"

The meeting appraised that the economic crisis had done its worst in Serbia, but that the rehabilitation of the industry will take a longer and will stretch into 2010.

Krkobabić said that pensioners have endured their share of the burden of the economic crisis.

IMF mission chief Albert Jaeger and his colleagues were acquianted with the reform plan in the sector of pensions and disabilities in Serbia, which they gave their further support to, said the statement.