Agreement reached for tax reforms

Finance Minister Diana Dragutinović said that an agreement has been reached within the Serbian government for the needed tax reforms.

Izvor: Beta

Saturday, 15.05.2010.

13:23

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Finance Minister Diana Dragutinovic said that an agreement has been reached within the Serbian government for the needed tax reforms. While attending the EBRD conference in Zagreb, she said that the contents of the reforms have not been finalized, but that there will be no increases on Value Added Taxes (VATs). Agreement reached for tax reforms Dragutinovic said that the reforms are expected to decrease the number of products that are being taxed by the lower VAT rate of eight percent. She said that these products make up 40 percent of production, and a normal percentage rate for such products would be about 10 to 15 percent. The high level VAT rate in Serbia is 18 percent. Dragutinovic said that the tax reforms do not aim to cause losses of taxation income and stressed that the reforms are needed in the transition to a new model of economic growth, based on exports. She said that the “Greek crisis scenario” is not threatening Serbia, since Serbia’s public debt is at about 30 percent of the gross domestic product, and the budget deficit is four percent. “There have been no symptoms of the Greek crisis spilling over to Serbia yet, and the Serbian banking sector is stable and liquid,” Dragutinovic said. The conference marking the anniversary of the European Bank for Reconstruction and Development’s Assembly began in Zagreb on Friday. The main topic of the conference is European economic recovery. Diana Dragutinovic (Tanjug archive)

Agreement reached for tax reforms

Dragutinović said that the reforms are expected to decrease the number of products that are being taxed by the lower VAT rate of eight percent.

She said that these products make up 40 percent of production, and a normal percentage rate for such products would be about 10 to 15 percent.

The high level VAT rate in Serbia is 18 percent.

Dragutinović said that the tax reforms do not aim to cause losses of taxation income and stressed that the reforms are needed in the transition to a new model of economic growth, based on exports.

She said that the “Greek crisis scenario” is not threatening Serbia, since Serbia’s public debt is at about 30 percent of the gross domestic product, and the budget deficit is four percent.

“There have been no symptoms of the Greek crisis spilling over to Serbia yet, and the Serbian banking sector is stable and liquid,” Dragutinović said.

The conference marking the anniversary of the European Bank for Reconstruction and Development’s Assembly began in Zagreb on Friday.

The main topic of the conference is European economic recovery.

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