Lower taxes "most effective assistance govt. can offer"

Serbian Minister of Economy Saša Radulović has said that lower taxes are the way to stimulate the economy.

Izvor: Blic

Monday, 09.09.2013.

09:31

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BELGRADE Serbian Minister of Economy Sasa Radulovic has said that lower taxes are the way to stimulate the economy. According to him, this is the most effective assistance that the government could possibly offer to business. Lower taxes "most effective assistance govt. can offer" “The existing system of taxation is not good, as it increases the cost of labor, discourages employment, production and exports,” Radulovic said for the Sunday issue of the Belgrade-based daily Blic. A great tax burden falls on small and micro enterprises, and in that situation one can hardly insist on a zero tolerance approach toward tax evasion, nor one can expect that the fight against gray economy will yield any results, Radulovic said. Employment will be a key parameter for measuring the government's success, and priority measures, which the prime minister announced recently in his address following the government reshuffle, are tax reform, regulatory guillotine which will relieve companies of various levies, Radulovic said. Asked whether the state could resolve the issue of business illiquidity, Radulovic noted that there are models that have been applied across the world. Banks in Serbia have a surplus of funds and nowhere to invest them, he said. The number of bad loans unofficially stands at 50 percent. I am of the opinion that the key lies in resolving the issue of bad loans, Radulovic said, adding that in this way, interest rates on new loans could be reduced. When it comes to big companies, liabilities should be turned into capital to help them run well, he believes. Speaking about expected changes to the Law on Privatization, Radulovic notes it would have been better if the law had been changed earlier, but even now, it is not too late. “Besides 179 companies whose future will be determined by mid-2014, according to the adopted Action Plan, there are many firms where a privatization contract has been declared null and void or in which the state holds a minority stake. It is vital to change the law as soon as possible as it is imprecise in some parts,” he said. Blic Tanjug

Lower taxes "most effective assistance govt. can offer"

“The existing system of taxation is not good, as it increases the cost of labor, discourages employment, production and exports,” Radulović said for the Sunday issue of the Belgrade-based daily Blic.

A great tax burden falls on small and micro enterprises, and in that situation one can hardly insist on a zero tolerance approach toward tax evasion, nor one can expect that the fight against gray economy will yield any results, Radulović said.

Employment will be a key parameter for measuring the government's success, and priority measures, which the prime minister announced recently in his address following the government reshuffle, are tax reform, regulatory guillotine which will relieve companies of various levies, Radulović said.

Asked whether the state could resolve the issue of business illiquidity, Radulović noted that there are models that have been applied across the world.

Banks in Serbia have a surplus of funds and nowhere to invest them, he said.

The number of bad loans unofficially stands at 50 percent. I am of the opinion that the key lies in resolving the issue of bad loans, Radulović said, adding that in this way, interest rates on new loans could be reduced.

When it comes to big companies, liabilities should be turned into capital to help them run well, he believes.

Speaking about expected changes to the Law on Privatization, Radulović notes it would have been better if the law had been changed earlier, but even now, it is not too late.

“Besides 179 companies whose future will be determined by mid-2014, according to the adopted Action Plan, there are many firms where a privatization contract has been declared null and void or in which the state holds a minority stake. It is vital to change the law as soon as possible as it is imprecise in some parts,” he said.

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