Daily: IMF to suggest govt. to raise VAT, retirement age

The International Monetary Fund (IMF) will suggest the next government to raise the value added tax (VAT) and reform the pension system, daily Blic writes. The daily states it gained access to IMF recommendations after its mission had returned from Belgrade to Washington and that they include suggestions to raise the VAT, reduce the mass of salaries paid from the national budget, increase the number of tax payers and lower subsidies. Daily: IMF to suggest govt. to raise VAT, retirement age The IMF will come to Serbia once the next government is formed, but it requires an agreement on three points in order to continue its arrangement with Serbia, the article states, listing a 2012 budget review, short-term program to reduce the national debt and faster structural reforms as the three points. According to Blic, the IMF wants the new government to consider a tax reform that would reduce the income and profit taxes, while raising the property tax and VAT. This would cut down the budget deficit, improve the competitiveness of the export sector, stimulate employment and reduce the grey economy, the daily writes. The reform is necessary to secure a more efficient, fair and sustainable pension system, the IMF explains. The mission points out that this pension system would give Serbia two options, to reduce pensions or raise the statutory retirement age and increase the number of workers. The second option is preferable, because otherwise the government would have to reduce pensions to a socially unacceptable level, the IMF says. Blic Tanjug

Daily: IMF to suggest govt. to raise VAT, retirement age

The IMF will come to Serbia once the next government is formed, but it requires an agreement on three points in order to continue its arrangement with Serbia, the article states, listing a 2012 budget review, short-term program to reduce the national debt and faster structural reforms as the three points.

According to Blic, the IMF wants the new government to consider a tax reform that would reduce the income and profit taxes, while raising the property tax and VAT.

This would cut down the budget deficit, improve the competitiveness of the export sector, stimulate employment and reduce the grey economy, the daily writes.

The reform is necessary to secure a more efficient, fair and sustainable pension system, the IMF explains.

The mission points out that this pension system would give Serbia two options, to reduce pensions or raise the statutory retirement age and increase the number of workers.

The second option is preferable, because otherwise the government would have to reduce pensions to a socially unacceptable level, the IMF says.