PM: We're looking for other solutions

The package of measures that has been agreed upon with the International Monetary Fund (IMF) is still valid, said Prime Minister Mirko Cvetkovic. However, he told reporters in Belgrade on Monday that the government, with the help of this international financial institution, "will try to find some other solutions that would make things easier for the people". PM: We're looking for other solutions "All options are on the table," the prime minister said answering whether the government had given up on the introduction of six percent "solidarity" tax on salaries. “The taxation should be implied after the budget rebalance, it has not come into force as yet, and it will be effective only once corresponding regulations have been adopted." "However, should some other, more favorable solutions be found, we will postpone these regulations for an indefinite period of time and begin implementing the better solutions,” Cvetkovic said. Yesterday, it was hinted that there was a possibility that the government will not introduce the so-called solidarity tax, but this has not yet been decided. Trade Minister Slobodan Milosavljevic told a B92 TV talk show that this is indeed a possibility "and only one of the measures considered". This comment came despite the fact that last week PM Mirko Cvetkovic, in the presence of IMF representatives, announced that the government had decided to save money by taxing income above RSD 12,000 (some EUR 125) with six percent. The proposal would have to be approved in parliament. "I wish to say that we are still looking for solutions. We must save about RSD 100bn," said Milosavljevic, and added that there is a "range of moves" that must be undertaken in order to do that, with increased taxes and lower administration costs being some of the possibilities. Belgrade newspapers also write this Monday, citing their government sources, that the Cvetkovic cabinet is preparing "a new arrangement with the IMF that would drop the solidarity tax". The idea to introduce the tax has caused an uproar in the country, with unions announcing protests, and now the government is mulling taxing only those employed in the state administration and public sector who earn above the state average of RSD 31,121 per month. Another idea is to lay off extra employees at the government and the whole state administration, and cut public sector management expenses. The newspapers say that agreement on this was reached over the weekend between Cvetkovic, one of his deputies and Economy Minister Mladjan Dinkic, while President Boris Tadic and NBS Governor Radovan Jelasic "have been informed" about it. However, when he spoke on Sunday in Belgrade, Tadic said he expected the citizens to "show understanding" for the government measures to tackle the economic crisis. First Deputy PM Ivica Dacic, who is also the leader of the Socialists (SPS), commented on another idea heard recently, to cut the number of ministries in the cabinet, by saying that although good, it was "discussed in the media more than in party meetings". "It's a good idea," said Dacic, "but I'm not sure it can be done." The current Serbian coalition government has 26 ministers and deputy PMs.

PM: We're looking for other solutions

"All options are on the table," the prime minister said answering whether the government had given up on the introduction of six percent "solidarity" tax on salaries.

“The taxation should be implied after the budget rebalance, it has not come into force as yet, and it will be effective only once corresponding regulations have been adopted."

"However, should some other, more favorable solutions be found, we will postpone these regulations for an indefinite period of time and begin implementing the better solutions,” Cvetković said.

Yesterday, it was hinted that there was a possibility that the government will not introduce the so-called solidarity tax, but this has not yet been decided.

Trade Minister Slobodan Milosavljević told a B92 TV talk show that this is indeed a possibility "and only one of the measures considered".

This comment came despite the fact that last week PM Mirko Cvetković, in the presence of IMF representatives, announced that the government had decided to save money by taxing income above RSD 12,000 (some EUR 125) with six percent.

The proposal would have to be approved in parliament.

"I wish to say that we are still looking for solutions. We must save about RSD 100bn," said Milosavljević, and added that there is a "range of moves" that must be undertaken in order to do that, with increased taxes and lower administration costs being some of the possibilities.

Belgrade newspapers also write this Monday, citing their government sources, that the Cvetković cabinet is preparing "a new arrangement with the IMF that would drop the solidarity tax".

The idea to introduce the tax has caused an uproar in the country, with unions announcing protests, and now the government is mulling taxing only those employed in the state administration and public sector who earn above the state average of RSD 31,121 per month.

Another idea is to lay off extra employees at the government and the whole state administration, and cut public sector management expenses.

The newspapers say that agreement on this was reached over the weekend between Cvetković, one of his deputies and Economy Minister Mlađan Dinkić, while President Boris Tadić and NBS Governor Radovan Jelašić "have been informed" about it.

However, when he spoke on Sunday in Belgrade, Tadić said he expected the citizens to "show understanding" for the government measures to tackle the economic crisis.

First Deputy PM Ivica Dačić, who is also the leader of the Socialists (SPS), commented on another idea heard recently, to cut the number of ministries in the cabinet, by saying that although good, it was "discussed in the media more than in party meetings".

"It's a good idea," said Dačić, "but I'm not sure it can be done."

The current Serbian coalition government has 26 ministers and deputy PMs.