"New wave" of price hikes feared

Serbian citizens will face another wave of price increases in early 2011, experts and analysts have warned.

Izvor: Tanjug

Sunday, 02.01.2011.

18:06

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Serbian citizens will face another wave of price increases in early 2011, experts and analysts have warned. Serbian citizens will face another wave of price increases in early 2011, experts and analysts have warned. "New wave" of price hikes feared Although the increase in VAT from eight to 18 percent early in 2010 should have caused the rise in the price of tropical fruits that did not happen since the amendments to the Law on VAT were taken back to the parliament procedure. Serbian President Boris Tadi did not sign bill into law, citing the legislation was not harmonized with the Law on the Budget of the Republic of Serbia for year 2011. The projected increase in electricity price in 2011 is 13.7 - 13.8 percent, and the final percentage and the moment when the increase will happen will be determined by the Serbian government in the coming days. Moreover, 2011 will bring an increase in the property tax for all citizens of Serbia which will not be higher than 50 percent compared to 2010. Although much shorter, there is also a list of products which will be cheaper in 2011 primarily based on the reduction of customs according to the Interim Trade Agreement with the EU. Furthermore, January 1 brought abolishment of a ten percent tax on the mobile telephony, which was introduced by the Serbian government in June 2009 as an anti-crisis measure for the reduction of the budget deficit. The above mentioned price increases will influence the movement of the inflation rate. A majority of economists agree that inflation control will be one of the greatest challenges for the creators of economic policy in Serbia in 2011.

"New wave" of price hikes feared

Although the increase in VAT from eight to 18 percent early in 2010 should have caused the rise in the price of tropical fruits that did not happen since the amendments to the Law on VAT were taken back to the parliament procedure.

Serbian President Boris Tadi did not sign bill into law, citing the legislation was not harmonized with the Law on the Budget of the Republic of Serbia for year 2011.

The projected increase in electricity price in 2011 is 13.7 - 13.8 percent, and the final percentage and the moment when the increase will happen will be determined by the Serbian government in the coming days.

Moreover, 2011 will bring an increase in the property tax for all citizens of Serbia which will not be higher than 50 percent compared to 2010.

Although much shorter, there is also a list of products which will be cheaper in 2011 primarily based on the reduction of customs according to the Interim Trade Agreement with the EU.

Furthermore, January 1 brought abolishment of a ten percent tax on the mobile telephony, which was introduced by the Serbian government in June 2009 as an anti-crisis measure for the reduction of the budget deficit.

The above mentioned price increases will influence the movement of the inflation rate.

A majority of economists agree that inflation control will be one of the greatest challenges for the creators of economic policy in Serbia in 2011.

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