Incentives lead to new vacancies - Who will get governmental incentives?

Source: RTS Sunday, 27.03.2016. 20:22
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(Photo: Kzenon/shutterstock.com)
Law on Investments, which equalized rights of foreign and domestic investors for incentives for new hires was supplemented by the Regulation, which lowered the limit for receiving this kind of support. Previously, it was necessary for the company to compete with the project of at least EUR 250,000 and now 150,000 and employing at least 15 or 20 employees is enough. The Ministry of Economy says that they meet the needs of domestic investors as well.

The first of four domestic companies that received incentives which was previously provided only to foreign investors is in Bukulja. It has marble in its vicinity and for 25 years it has been producing construction materials.

- A department which we see behind us is the future plant for production of thermal insulation materials funded partly by our company and partly from the incentives of the Ministry of Economy, our obligations within the contract is employing 70 new workers - Vladan Matijasevic, technical manager at Arandjelovac-based Bekament, explains.

For investments in the least developed municipalities, the state gives up to 70 percent of funds if they employ at least 20 workers. For those a little bit more developed, it is necessary to employ 30 to 50 employees, with a minimum investment of EUR 300,000 to 600,000. It's not about subsidy per vacancy, but about supporting the entire project, depending on how important it is for a specific region, the government says.

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