DRAGUTINOVIC: Government prepares laws for higher taxes

(Diana Dragutinović)

Serbian Minister of Finance Diana Dragutinovic stated that the Government was preparing two laws to impose higher taxes on rich citizens and companies registered at offshore destinations.

- These laws deal with the tax on property and the tax on profit of companies - the Minister said to the press in the Parliament of Serbia and added that she expected those laws to be adopted by the end of the first quarter of 2011.

- The laws are not directed against anyone. Their only aim is to impose higher taxes on the property of higher value - said Ms. Dragutinovic.

She stated that between 13 and 15% of the companies operating in Serbia were registered at offshore destinations, so-called 'tax heavens'.

- The best European experiences that have already given results in the countries whose companies are also registered in tax heavens will be built in the new laws - said the Minister of Finance of Serbia.

She said that there was a possibility of retroactive application of the Law on extra profit, which stipulated additional taxation of the citizens who were using privileges to acquire large property in the former regime. The Minister also said that the talks with the International Monetary Fund occasioned by the sixth review of the arrangement were close to end.