New Law on Parafiscal Charges to unify all charges for business sector

Minister of Finance Dusan Vujovic has announced that a new Law on Parafiscal Charges, meant to unify all charges for the business sector, was being prepared.

– This will be the matrix which will be published on the level of the Republic and the level of each local self-government, and each investor, whether local or foreign, will therefore know how much they will have to pay, from environmental taxes to local contributions – Vujovic said to the press and added that the aim was to arrange the field.

The minister said that giant steps would be made towards electronic tax returns, thereby increasing the transparency.

According to him, the reform of the tax administration is supposed to lead to a uniform implementation of tax laws in Belgrade, Stara Pazova, Vranje or any other place, as there are reliable indications that the tax policy is not being implemented uniformly in Serbia.

– We want everyone in Serbia to be certain that they will be treated by their tax administration equally, wherever they come from – Vujovic said.

Thank to the surplus of around EUR 650 million in the first eight months, there is room to reduce taxes, but it needs to be done carefully due to reduced income, he said.

Vujovic said that the ministry would make efforts towards reducing the labor cost, which should result in new jobs and increased productivity.

He said that concrete measures had not been prepared, but that, in preparing the 2018 budget, the Government would see how to reduce the charges to the business sector, so as to improve its performance, without jeopardizing expected fiscal results.

Salary and pension raises

He added that salary and pension raises would be considerable and that concrete figures would be announced in late October.

– We are close to reaching a solution and we have looked into all the figures with our colleagues from the IMF, so we expect concrete solutions to be proposed on the margins of the annual assembly during the Washington meeting and certainly in the first days of their official visit to Belgrade on October 26. These solutions will then be included in this year's realization plan and next year's budget – Vujovic said.

He emphasized that he expected the raises to be considerable and added that he couldn't specify the percentage or the manner of distribution at the moment, as those would be subject to additional negotiations and agreements.

Ministarstvo finansija Republike Srbije

IMF

Dusan Vujovic

budget surplus

Law on Parafiscal Charges

parafiscal charges

environmental tax

electronic tax returns

reform of tax administration

salaries

pension

salary raise

pension raise